The New Zealand Debt Management Office (NZDMO) announced today details of the Government's 2011/12 domestic debt programme. The NZDMO intends to issue up to $13.5 billion of bonds in 2011/12.
"Bond issuance has peaked with this fiscal year's $20 billion bond programme" said Mr. Philip Combes, Treasurer NZDMO. "Pre-funding and Budget 2011 initiatives have reduced overall future borrowing programmes from 2011/12 compared to the December forecasts".
Forecast Gross and Net Bond Issuance
| $ Billions | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 |
|---|---|---|---|---|---|
| Gross Bond Issuance | 20.0 | 13.5 | 12.0 | 10.0 | 8.0 |
| Net Bond Issuance | 20.0 | 5.9 | 2.0 | 10.0 | -2.0 |
In coming weeks the NZDMO intends to launch a new nominal 2023 bond maturity. Further details will be announced prior to the first tender of the bond.
The NZDMO remains committed to issuing a 20 September 2025 inflation-indexed bond. This would form part of the 2011/12 bond programme.
Finally, to further promote liquidity in longer bond maturities, the target tranche size for nominal bonds maturing on or after 15 December 2017 has been increased from $10 billion to $12 billion.
The target tranche size for nominal bonds maturing in April 2013 and April 2015 remains at $10 billion.
ENDS
Treasury Contacts
Philip Combes | Treasurer
Tel: +64 4 917 6133
Andrew Turner | Head of Portfolio Management
Tel: +64 4 917 6071