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Crown's debt management office issues NZ$2 billion worth of new 7-year bond at 3% in oversubscribed issue

Bonds
Crown's debt management office issues NZ$2 billion worth of new 7-year bond at 3% in oversubscribed issue

The New Zealand Debt Management Office (NZDMO) says it has issued NZ$2 billion worth of seven-year bonds with a 3% coupon.

The NZDMO, a unit of Treasury that manages the Government's debt, says the bonds, which mature on April 15, 2020, were issued at a yield to maturity of 3.15%. The bonds were issued via a syndicate of banks.

"Total book size, within the initial syndication pricing range, was in excess of NZ$2.8 billion," the NZDMO said.

The deal's due to settle next Monday, April 15. The 3% annual interest will be paid semi-annually in arrears. Here's the term sheet.

It's one of the NZDMO's biggest single deals, but smaller than last October's NZ$2.5 billion issue of inflation indexed bonds.

"No 15 April 2020 bonds will be offered in tenders prior to 30 May 2013. NZDMO will continue to assess demand for bond maturities ahead of each tender as well as taking into account its own portfolio requirements. Further announcements relating to the Government’s domestic bond programme will be made in conjunction with the Budget to be released on 16 May 2013," the NZDMO said.

The joint lead managers of the syndicate are ANZ Bank New Zealand, Bank of New Zealand, Deutsche Bank AG (New Zealand Branch), and Westpac Banking Corporation (acting through its New Zealand Branch).

 

 

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5 Comments

Does anybody know what currency is the government borrowing in?

 

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If you click on the term sheet link it states NZD denominated bonds.

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Kimy please explain further why you think the Treasury and Govt will require the NZD lower for the sake of their budgets, and the RBNZ because of "open positions" ?

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Appreciate all that Kimy, I'm wondering what makes you think theyre running large open posiiton (I deal with them) and wondering why you think that the Gobt and treasury who generally borro in NZD, or hedged back into NZDs, require a lower NZD for budegeting reasons ?

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Good post mist......and prolly there thereabouts in the framework of a Key directive.....just the type of high NZD value investment Key would be interested in with a better understanding of....although presented earnings in the GDP figures may need a new category....Forex earnings , carry fwd losses enabling them to ..well skew the books at will...

Um...much like Fonterra do now.

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