New Zealand Debt Management Office
Revision to New Zealand Government Bond Oversubscription Rules
On 28 May 2009, NZDMO announced that it would undertake market consultation on initiatives to improve bond market liquidity, including a review of tender oversubscription rules.
After considering market feedback, NZDMO has decided that to better accommodate investor demand for specific Government Bonds, the maximum percentage of oversubscription between bonds offered in a tender will increase from the current 25% to 50%.
Oversubscription will continue to be capped by the total amount of bonds offered in each tender.
This will bring the oversubscription rule for Government Bonds into line with the oversubscription rule for Treasury Bills.
This change will take effect from the bond tender to be held on 24 September 2009.
Updated Information Memoranda for government securities and updated “Operating Rules and Guidelines: Government Securities Tenders” are available on the NZDMO website; http://www.nzdmo.govt.nz/securities/tendering. The updated documents reflect the change to oversubscription rules as well as a range of administrative revisions.
Philip Combes | Treasurer
Tel: +64 4 917 6133
Andrew Turner | Head of Portfolio Management
Tel: +64 4 917 6071