In conjunction with Budget 2013, the New Zealand Debt Management Office (NZDMO) has updated its debt issuance programme. The total borrowing programme, which includes both government bonds and Treasury bills, is $3 billion lower than that outlined in the 2012 Half-Year Economic and Fiscal Update (HYEFU).
Details of today’s announcement are:
- 2012/13 bond issuance remains at a maximum of $14 billion
- 2013/14 bond issuance will be a maximum of $10 billion
- up to $5 billion of inflation-indexed bonds are expected to be issued in the 2013/14 fiscal year, subject to market conditions
- bond issuance over the forecast period is expected to be $2 billion lower than the HYEFU forecast, and
- Treasury bill outstandings are expected to average $4 billion over the forecast period.
Forecast Gross and Net Debt Issuance
2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | Cumulative | |
---|---|---|---|---|---|---|
Budget 2013 ($ billion) | ||||||
Gross bond issuance | 14.0 | 10.0 | 8.0 | 7.0 | 7.0 | 46.0 |
Change in Treasury bill outstandings | -4.0 | -1.0 | - | - | - | -5.0 |
Gross borrowing programme | 10.0 | 9.0 | 8.0 | 7.0 | 7.0 | 41.0 |
All bond maturities | 10.0 | - | 11.0 | 2.0 | - | 23.0 |
Net borrowing programme | - | 9.0 | -3.0 | 5.0 | 7.0 | 18.0 |
Change from HYEFU 2012 ($ billion) | ||||||
Gross bond issuance | - | - | -2.0 | - | - | -2.0 |
Change in Treasury bill outstandings | - | -1.0 | - | - | - | -1.0 |
Gross borrowing programme | - | -1.0 | -2.0 | - | - | -3.0 |
The NZDMO continues to focus on extending the duration of the Crown’s debt portfolio and is considering launching two longer-dated bonds as part of the 2013/14 bond programme. Possible maturities being considered include an April 2027 nominal and a September 2030 inflation-indexed bond.
The tender schedule for the September quarter will be released prior to 30 June 2013.
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