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 $4 billion over the forecast period.
Forecast Gross and Net Debt Issuance
|Budget 2013 ($ 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.
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