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.
No comments yet
NZ dollar rises after heartening Chinese data
Suspect company faces liquidation after director dies
Foreign investors face maximum penalty for breach after $13M purchase
Napier Port share offer $2.27-$2.60; will raise net $110 million
Crucial carbon reduction recommendations due tomorrow
NZ Super Fund to invest in $300M local hotel venture
Infratil-backed Longroad Energy secures Texas wind farm finance
Peters to meet top US administration hawks in Washington
BNZ kyboshes AMP's A$3.3 bln life business sale
Tourist numbers dip in May on fewer Chinese, Indian arrivals