Euroclear Bank will process the issuance and secondary market settlement of a new type of Irish government debt Irish Treasury Bills (ITBs).
Acting through the National Treasury Management Agency (NTMA), the Irish government will offer three lines of between 400 million and 500 million each during todays auction of these securities. Issuance of ITBs, which will initially have one, three and six month maturities, will occur through Euroclear Bank.
This development is a natural extension of Euroclear Banks continued support of the Irish capital markets, in its role as the central securities depository for Irish government bonds, says Pierre Yves Goemans, managing director and head, Commercial Division, Euroclear.
As the NTMA schedules further T-bill auctions throughout the year, we will work closely with the NTMA, and with the Central Bank of Ireland, to ensure an orderly market for the settlement and safekeeping of Irish T-bills, which may also be used as collateral for Eurosystem purposes.
As with Irish Government Bonds we are pleased to work with Euroclear Bank in bringing new products to the market quickly and efficiently, says National Treasury Management Agency.
Together with The Bank of New York Mellon as distribution and paying agent and Euroclear Bank as settlement provider, we look forward to building up the Irish Treasury Bill programme quickly so that it becomes a deep and liquid market with regular twice-monthly auctions.
L.D.