Content supplied by the NZDMO
May 16, 2012
In conjunction with Budget 2013, the New Zealand Debt Management Office (NZDMO) has updated its debt issuance programme.
The total borrowing programme, which includes both government bonds and Treasury bills, is $3 billion lower than that outlined in the 2012 Half-Year Economic and Fiscal Update (HYEFU).
Details of today’s announcement are:
- 2012/13 bond issuance remains at a maximum of $14 billion
- 2013/14 bond issuance will be a maximum of $10 billion
- up to $5 billion of inflation-indexed bonds are expected to be issued in the 2013/14 fiscal year, subject to market conditions
- bond issuance over the forecast period is expected to be $2 billion lower than the HYEFU forecast, and
- Treasury bill outstandings are expected to average $4 billion over the forecast period.
Forecast Gross and Net Debt Issuance
| 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | Cumulative | |
| Budget 2013 ($ billion) | ||||||
| Gross bond issuance | 14.0 | 10.0 | 8.0 | 7.0 | 7.0 | 46.0 |
| Change in Treasury outstandings | -4.0 | -1.0 | - | - | - | -5.0 |
| Gross borrowing programme | 10.0 | 9.0 | 8.0 | 7.0 | 7.0 | 41.0 |
| All bond maturities | 10.0 | - | 11.0 | 2.0 | - | 23.0 |
| Net borrowing programme | - | 9.0 | -3.0 | 5.0 | 7.0 | 18.0 |
| Change from HYEFU 2012 ($ bln) | ||||||
| Gross bond issuance | - | - | -2.0 | - | - | -2.0 |
| Chang in Treasury bill outstandings | - | -1.0 | - | - | - | -1.0 |
| Gross borrowing programme | - | -1.0 | - | - | - | -3.0 |
The NZDMO continues to focus on extending the duration of the Crown’s debt portfolio and is considering launching two longer-dated bonds as part of the 2013/14 bond programme.
Possible maturities being considered include an April 2027 nominal and a September 2030 inflation-indexed bond.
The tender schedule for the September quarter will be released prior to 30 June 2013.
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