NTMA Annual Report and Financial Statements 2022 (Ireland Strategic Investment Fund (ISIF))

Summary

• The NTMA issued €7.1bn of benchmark bonds at a weighted average yield of 1.10% and a weighted average maturity of 14.8 years.p.4
• €3.5bn of the €7.3bn long-term funding was raised from a new 10-year bond in a syndicated transaction in January.p.4
• General Government Debt declined by €11bn to €225bn at end-2022, the first decline since 2019 and the largest since 2014.p.4
• The total commitment to Ireland is €16.7bn, with ISIF commitments of €6.5bn across 188 investments unlocking €10.2bn of co-investment.p.4
• ISIF investments supported 39,686 jobs in FY 2021.p.4
• ISIF is a €15bn fund comprising the Discretionary Portfolio (€8.7bn) and the Directed Portfolio (€6.3bn).p.24

Key insights

1. ISIF's investment return was -6.7% in 2022, against an investment target of exceeding the five-year rolling cost of Government debt (2.8% at end-2022).p.25
2. The Discretionary Portfolio includes €3.6bn of Irish Portfolio investments and €5.2bn of Global Portfolio investments.p.25
3. The €2bn Pandemic Stabilisation and Recovery Fund was established in May 2020 and ended at end-May 2022.p.24
4. In June 2022 ISIF launched a new €500m initiative focused on Ireland's five regional cities.p.27
5. ISIF exceeded its co-investment target with €1.6m alongside every €1m committed by ISIF.p.29
6. The ECB's first rate hike was in July, when it increased rates by 0.5%, and the main refinancing rate stood at 2.5% at year-end.p.14
7. NewERA advised on 167 assignments with a total value of €7.6bn.p.10
8. The State Claims Agency was managing 11,204 active claims with an estimated outstanding liability of €4.96bn at end-2022.p.5
9. ISIF has commenced a €1bn five-year climate investment programme.p.30