How to Buy Irish Government Bonds

You have to be lucky to buy Irish government bonds

The governmental agency responsible for issuing and managing all of Ireland's national debt instruments is the National Treasury Management Agency or NTMA. Clearing and settlement of these debt instruments have been handled by Euroclear since late 2000. Irish government bonds are denominated in euros and are listed and traded on the Irish Stock Exchange. Although the vast majority of Irish government bonds are held by foreign investors, individual American investors may find it difficult to purchase these securities.

Things You'll Need

• Account with an investment firm that has a relationship with an Irish brokerage firm
• Access to research materials
• Money to invest

Instructions

How to Buy Irish Government Bonds

1. The first step to making any investment is to create a solid financial plan. Consider factors such as your income, savings, other investments, tax situation, time to retirement and predisposition toward risk. Debt instruments of foreign governments do not carry the same safety and security as United States government bonds and should not be considered a low-risk investment.

2. Research the debt instrument you are considering buying. Information on Irish government bonds can be obtained from the Irish Stock Exchange at ise.ie/index.asp?locID=275&docID=-1. Current rates on Irish government bonds can be found on the NTMA's official website at ntma.ie/GovernmentBonds/govtBondsIntro.php.

3. Establish an account with a stock brokerage company or investment firm that has access to foreign stock exchanges. Deposit the required amount into your brokerage account.

4. Determine the amount of money you are comfortable investing in Irish government bonds. Determine which bond or bonds you wish to purchase. Instruct your broker to request a current quote for these bonds from either the Irish Stock Exchange or a qualified broker/dealer in Ireland. The NTMA also maintains a secondary market for its bonds to increase their liquidity.

5. Instruct your broker to enter a "buy" order only after you are satisfied with all fees, the price of the bonds and the yield. Be patient. Purchasing Irish government bonds by individual foreign investors, while not unheard of, is quite difficult, as 95 percent of the market is controlled by government and institutional investors.

Tips & Warnings

• Purchasing shares of an international bond mutual fund is a way to participate in foreign debt instruments while still diversifying your investment. Income received from foreign government bonds may be taxed by both the foreign government and the U.S. federal government. Consult your tax adviser for current regulations. The NTMA recognizes 10 Primary Dealers that provide a continuous market for Irish government bonds. They are as follows: Barclays Capital, London - barcap.com; Paribas, London - bnpparibas.com; Calyon, London - calyon.com; Citigroup, London - citigroup.com; Davy, Dublin - davydirect.ie; Deutsche Bank, Frankfurt - db.com; Dresdner Bank, Dresdner - kleinwort.com; HSBC CCF, Paris - hsbc.com; ING Bank NV, Amsterdam - ingwholesale.com; Royal Bank of Scotland, London - rbsmarkets.com

Resources

• List of Irish Stock Brokers