Brendon Doyle
Deputy Secretary, Financial Operations and Head of NZDMO
The New Zealand Debt Management Office (NZDMO) announced today a decrease in the 2013/14 domestic bond programme from $10 billion to $8 billion.
NZDMO also announced plans to repurchase up to $3 billion of the April 2015 nominal bond in the second half of 2013/14, subject to market conditions.
The changes outlined above are in response to a $5 billion reduction in the Crown’s forecast funding requirements, as a result of a stronger cash position from the 2012/13 year and further improvements forecast in the current fiscal year.
Both gross and net bond issuance are expected to be a cumulative $4 billion lower than the Budget 2013 forecasts.
Forecast Gross and Net Debt Issuance (Face Value)
2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | Total | |
---|---|---|---|---|---|---|
HYEFU 2013 $ billion | ||||||
Gross bond issuance | 8 | 7 | 7 | 6 | 6 | 34 |
Repayment of market bonds | 3 | 7.8 | 1.2 | - | 11.9 | 23.9 |
Net bond issuance | 5 |
-0.8 |
5.8 | 6 | -5.9 | 10.1 |
Change from Budget 2013 $ billion | ||||||
Gross bond issuance | -2 | -1 | - | -1 | -4 | |
Repayment of market bonds | 3 | -3.2 | - | - | -0.2 | |
Net bond issuance | -5 | 2.2 | - | -1 | -4.2 |
Further details:
- As announced at Budget 2013, the 2013/14 domestic bond programme will comprise up to $5 billion of inflation-indexed bonds, subject to market conditions.
- The April 2027 nominal bond, previously being considered for launch in 2013/14, will now be delayed until 2014/15, at the earliest.
- Additional information relating to the bond repurchase programme can be found in the New Zealand Government Bond Tender Schedule, also released today.
ENDS
Treasury Contacts
Brendon Doyle | Deputy Secretary, Financial Operations and Head of NZDMO
Tel: +64 4 917 6133
Sarah Vrede | Head of Portfolio Management
Tel: +64 4 917 6071