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)
|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||
|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|
- 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.
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