Sharechat Logo

Debt Management Office expands bond programme by $6.5 bln

Tuesday 18th December 2012

Text too small?

The New Zealand Debt Management Office has expanded its programme for issuing bonds by $6.5 billion over the next four years and flagged it will sell a further $7 billion in debt the following year.

The DMO will issue $14 billion in bonds in the 2012/13 year, an increase of $500 million from the budget, and sell an unchanged $10 billion the following year. That will see some $200 million of nominal bonds in each of the tenders in the March quarter next year, it said in a statement.

The office added $2 billion to the 2014/15 programme for $10 billion in issuance, and raised its 2015/16 forecast by $4 billion to $ 7 billion.

"We're expanding the borrowing programme over the next few years because the surpluses will be smaller than forecast - that is a concern," Finance Minister Bill English said.

The Treasury now sees net debt topping out at $75.9 billion in 2016/17, though that's a smaller percentage of gross domestic product than in the two previous years.

English told a media briefing in Wellington the government will need to consistently produce surpluses of $2 billion to $3 billion if it wants to achieve its debt repayment targets in the future.

The DMO will embark on a mid-curve bond in the near future, with an April 2020 maturity likely, it said.

Its inflation-linked bond programme will see tenders begin on Feb. 7 next year, with $200 million offered each week for the remainder of the fiscal year.

The maximum tranche size will be set $6 billion, and is expected to make up between 10 percent and 20 percent of the government's issue bonds.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Spark using 'free' rugby offer to lock out competitors, says 2Degrees
NZ dollar rises against the Aussie after RBA indicates further rate cuts
Gold Report 18th June 2019
Electricity Authority urged to test privacy status of meter data
Shorn Fonterra likely to keep ingredients business - Jarden
Fully automated milking several decades away - Dairy NZ
NZ consumer confidence still downbeat in June quarter
NZ dollar largely steady; focus on FOMC
18th June 2019 Morning Report
Farm debt mediation will ensure fair process - O'Connor

IRG See IRG research reports