NTMA Annual Report and Financial Statements 2023 (Ireland Strategic Investment Fund (ISIF))

Summary

• The NTMA issued €7.4bn of benchmark bonds at a weighted average yield of 3.19% and a weighted average maturity of 18.5 years.p.5
• €3.5bn of the long-term funding was raised at a yield of 3.11% from a new 20-year green bond issued via syndication.p.5
• The total commitment to Ireland, including co-investment by private sector partners, is €18.3bn, with ISIF commitments of €7.2bn across 213 investments unlocking €11.1bn of co-investment.p.5
• ISIF is a €14.6bn fund made up of the Discretionary Portfolio (€8.4bn) and the Directed Portfolio (€6.2bn).p.26
• ISIF committed €839m in 23 new investments during the year.p.10
• ISIF supported 42,454 jobs, with Gross Value Added of €2.3bn and turnover of €5.6bn.p.31

Key insights

1. ISIF earned an investment return of 4.3% in the year, reflecting strong public equity and fixed income market gains.p.27
2. A new €400m allocation for equity-based investments in new housing projects was announced, building on housing commitments that have supported 14,200 new homes.p.27
3. The ECB raised interest rates by another 200 basis points during the year, following 250bps of increases in 2022.p.12
4. Between 2017 and 2021 the NTMA issued total benchmark bonds of €92bn at a weighted average yield of just 0.6%.p.14
5. ISIF's investment target is to exceed the five-year rolling cost of Government debt, which was 2.7% at end-2023.p.27
6. Food and agriculture is Ireland's largest indigenous sector, with exports of €16.3bn to 175 countries and 164,900 people employed.p.30
7. The State Claims Agency was managing over 11,130 clinical and general claims with an estimated total liability of €5.18bn.p.10
8. The NDFA is delivering a pipeline of PPP and non-PPP infrastructure projects with an estimated capital value of c. €3.2bn.p.5