Issue date: 
Thursday, 8 December 2016

Sarah Vrede
Director, Financial Operations and Head of NZDMO

In conjunction with the 2016 Half Year Economic and Fiscal Update (HYEFU), the New Zealand Debt Management Office (NZDMO) has updated its domestic bond programme.

The 2016/17 domestic bond programme increases to $8.0 billion, $1.0 billion higher than that announced at the 2016 Budget.

Further out, the forecast domestic bond programme for 2019/20 decreases by $1.0 billion to $6.0 billion, leaving total bond programmes unchanged from the 2016 Budget over a comparable period.

A $6.0 billion bond programme is also forecast for the additional year incorporated in the HYEFU period (2020/21).

Forecast Domestic Bond Programmes

HYEFU 2016
($billion, face value)
2016/17 2017/18 2018/19 2019/20 2020/21 Total

Gross bond issuance

8.0 7.0 7.0 6.0 6.0 34.0
Repayment of market bonds 2.2 9.1 11.5 7.3 11.1 41.2
Net bond issuance 5.8 -2.1 -4.5 -1.3 -5.1 -7.2

Further details

  • Subject to market conditions, a new 20 September 2040 inflation-indexed bond is expected to be launched, via syndication, before 30 June 2017.
  • Inflation-indexed bond issuance will account for up to $2.5 billion of the $8.0 billion 2016/17 domestic bond programme.
  • NZDMO plans to continue repurchasing the 15 December 2017 nominal bond over the remainder of the 2016/17 fiscal year. The exact amount repurchased will depend on portfolio requirements and market conditions.

ENDS

Treasury Contacts

Sarah Vrede | Director, Financial Operations and Head of NZDMO
Tel: +64 4 917 6071

Murray Jones | Head of Portfolio Management
Tel: +64 4 917 6075

Last updated: 
Thursday, 8 December 2016