Ireland Weighs Dollar, Inflation Bonds ‘in Medium Term’

Ireland’s redemption needs at the end of the decade produce potential opportunities for dollar and inflation-linked bonds, according to Frank O’Connor, director of funding and debt management at the nation’s debt office.

“While supply is limited it is difficult to look at other products but we would see inflation linked and dollar bonds being part of our portfolio of debt in the medium term,” O’Connor told reporters in Dublin on Friday. “You would be looking at 2019, 2020 or perhaps the latter part of 2018.”

Ireland has about 48 billion euros ($54 billion) of debt maturing in the three years through 2020. The nation’s bond yields have plunged in recent years, in part because of an improving economy and in part because of the European Central Bank’s quantitative-easing program.

“Having already made a considerable improvement to our maturity profile we have no particular bias to only issue longer bonds,” said O’Connor. “Rather, we will monitor market developments and investor appetite.”

“On inflation-linked bonds, you could do one and tap it over time but we would probably like to do a couple of maturities, if we have the capacity,” said O’Connor.

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