Minister McGrath welcomes the purchase and cancellation of the final tranche of the Floating Rate Bonds
- Foilsithe: 7 Meán Fómhair 2023
- An t-eolas is déanaí: 12 Aibreán 2025
The Minister for Finance Michael McGrath has today (7 September) welcomed the announcement by the National Treasury Management Agency (NTMA) of the cancellation of the final €534 million of the Floating Rate Bonds that were acquired by the Central Bank in 2013 following the liquidation of the Irish Banking Resolution Corporation (IBRC) – formerly Anglo Irish Bank - in February 2013.
Commenting on the cancellation, Minister McGrath said:
“I welcome the news that the NTMA has today purchased and cancelled the final tranche of the Floating Rate Bonds that were issued in connection with the liquidation of the Irish Bank Resolution Corporation (IBRC).
"This development brings to an end a specific consequence of the banking crisis of more than a decade ago and has also happened ahead of the original schedule for the disposal of the Floating Rate Bonds.
"I am also very happy to say that the substantial regulatory reforms put in place domestically and with our EU partners during the years since the crisis mean that the Irish banking system is much better placed to face any future challenges, should they arise.”
Notes
The National Treasury Management Agency (NTMA) has today announced the cancellation of the final €534 million of the Irish Floating Rate Treasury Bond which was due to mature on 18 June 2053. It was purchased from the Central Bank of Ireland and subsequently cancelled. This bond was issued in 2013 in connection with the Irish Bank Resolution Corporation Act.
Today’s transaction means that all eight of the Floating Rate Bonds issued in 2013 have now been fully purchased and cancelled:
- on 8 February 2013 the NTMA issued €25.034 billion nominal of Floating Rate Bonds, with original maturities ranging from 25 to 40 years, which were exchanged for the Promissory Notes held by the Central Bank of Ireland (CBI), on foot of the Irish Bank Resolution Corporation liquidation
- following today’s transaction, all €25.034 billion nominal of the Floating Rate Bonds have been purchased from the CBI by the NTMA and subsequently cancelled
Table 1 – Floating Rate Bonds cancelled
| Year | Amount |
| € billion | |
| 2014 | 0.5 |
| 2015 | 2.0 |
| 2016 | 3.0 |
| 2017 | 4.0 |
| 2018 | 4.0 |
| 2019 | 3.0 |
| 2020 | 1.0 |
| 2021 | 2.0 |
| 2022 | 3.0 |
| 2023 | 2.534 |
| Total | 25.034 |
Table 2 – Floating Rate Bonds outstanding
| Bond | Issued Feb 2013 | Outstanding September 2023 |
| € billion | € billion | |
| Floating Rate Treasury Bond 2038 | 2.000 | - |
| Floating Rate Treasury Bond 2041 | 2.000 | - |
| Floating Rate Treasury Bond 2043 | 2.000 | - |
| Floating Rate Treasury Bond 2045 | 3.000 | - |
| Floating Rate Treasury Bond 2047 | 3.000 | - |
| Floating Rate Treasury Bond 2049 | 3.000 | - |
| Floating Rate Treasury Bond 2051 | 5.000 | - |
| Floating Rate Treasury Bond 2053 | 5.034 | - |
| Total | 25.034 | 0.0 |
Irish Bank Resolution Corporation (IBRC)
- following its liquidation in February 2013, Kieran Wallace and Eamonn Richardson were appointed joint-Special Liquidators of IBRC and since their appointment have published an annual Progress Update Report which have provided a comprehensive review of the progress to date and the current status of the liquidation
- the most recent Progress Update Report was published in September 2022. As set out in this Progress Update Report, the timeline for completion of the liquidation remains forecast to be 31 December 2024. This is subject to ongoing review and is primarily dependant on resolution of litigation proceedings and stable market conditions for asset sales
- fees incurred in the liquidation for the 12 month period to 31 December 2021 were €11.4 million. There are total fees incurred since the beginning of the liquidation in February 2013 to 31 December 2021 of €305 million. The Special Liquidators have forecasted that fees of between €15.5 million and €19.5 million will be incurred to complete the liquidation, which will bring the total fees incurred to between €320.5 million and €324.5 million
- all admitted unsecured creditors (including the State) at the date of liquidation have been fully repaid. To date the State has received approx. €1.7 billion from the special liquidation in respect of its unsecured creditor claims, interest on these claims and its holding of the preference shares in the Bank. Any remaining funds left in the liquidation once all remaining tasks are completed will be returned to the State as the owner of the equity in the former bank
- the next Progress Update Report is expected to be published before end-September 2023 where an updated position on the liquidation will be provided