Issue date: 
Tuesday, 17 December 2013

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

Last updated: 
Thursday, 23 June 2016