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Irish Non-Financial Corporations and the US Private Placement Market

Author

Listed:
  • Coates, Dermot

    (Central Bank of Ireland)

  • Moloney, Aoife

    (Central Bank of Ireland)

  • Osborne-Kinch, Jenny

    (Central Bank of Ireland)

Abstract

This letter examines the use of an alternative source of funding, known as private placements, for Irish resident non-financial corporations (NFCs). Private placements are fixed-rate bonds arranged privately between an issuer and an institutional investor. The US private placement market is traditionally the primary market for Irish NFCs. As there is no single repository of private placement data, data was obtained from various sources including industry-specific publications and annual reports. Data indicate that since 2003 there have been an estimated 39 deals which involved 22 Irish NFCs. As of Q2 2014, we estimate that the total amount outstanding stood at $10.4 billion, with new issuance exceeding $1 billion per annum in recent years. Private placements have not been included in our published statistics to date, and this new data will help address this gap.

Suggested Citation

  • Coates, Dermot & Moloney, Aoife & Osborne-Kinch, Jenny, 2015. "Irish Non-Financial Corporations and the US Private Placement Market," Economic Letters 12/EL/15, Central Bank of Ireland.
    • Handle: RePEc:cbi:ecolet:12/el/15
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    File URL: https://centralbank.ie/docs/default-source/publications/economic-letters/economic-letter---vol-2015-no-12.pdf?sfvrsn=10
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    References listed on IDEAS

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    1. Simon H. Kwan & Willard T. Carleton, 2010. "Financial Contracting and the Choice between Private Placement and Publicly Offered Bonds," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(5), pages 907-929, August.
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    Cited by:

    1. Coates, Dermot & Dooley, Jennifer, 2016. "Private Placement Debt Securities and the Wholesale Funding of the Banking System in Ireland," Economic Letters 04/EL/16, Central Bank of Ireland.

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