Issue date: 
Thursday, 26 May 2016

Sarah Vrede
Director, Financial Operations and Head of NZDMO

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

The 2016/17 domestic bond programme is set at $7.0 billion, $2.0 billion lower than forecast at the Half Year Economic and Fiscal Update (HYEFU) 2015.

Beyond 2016/17, a lower funding requirement means forecast bond programmes decrease from $9.0 billion to $7.0 billion for each of the 2017/18, 2018/19 and 2019/20 fiscal years.

Forecast Domestic Bond Programmes

Budget 2016
($billion, face value)
2015/16 2016/17 2017/18

2018/19

2019/20
 

Total

Gross bond issuance

8.0 7.0 7.0 7.0 7.0 36.0

Repayment of market bonds
 

1.2 0.0 11.3 11.5 7.4 31.4

Net bond issuance
 

6.8 7.0 -4.3 -4.5 -0.4 4.6

Further details:

  • Issuance for the remainder of 2015/16 is planned to be in line with the previously-announced Government Bond Tender Schedule for quarter ending 30 June 2016.
  • Subject to market conditions, a new 15 April 2037 nominal bond is expected to be launched, via syndication, in the first half of 2016/17.
  • Inflation-indexed bond issuance is expected to be between $1.0 and $2.0 billion of the $7.0 billion 2016/17 domestic bond programme.
  • NZDMO plan to begin repurchasing the 15 December 2017 nominal bond in the 2016/17 fiscal year. The amount repurchased will depend on portfolio requirements and market conditions. Additional information will be released in June 2016 with the September 2016 quarter bond tender schedule.

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: 
Wednesday, 22 June 2016