Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZDMO lifts debt issuance by $1 billion over forecast period

Thursday 25 May 2017 02:04 PM

BUDGET 2017: NZDMO lifts debt issuance by $1 billion over forecast period

By Rebecca Howard

May 25 (BusinessDesk) -

(BusinessDesk) – The New Zealand Debt Management office lifted its issuance programme by $1 billion through June 2021 compared to prior forecasts in its half year economic and fiscal update and said it plans to launch a new April 20, 2029 bond before the end of the year.

The 2017/18 programme is set at $7 billion, which is unchanged from the half year forecasts in December, the DMO said in a statement. The office will then raise $7 billion over the next three years and $6 billion in the year to June 2021. The $1 billion increase in issuance comes in the year to June 2020.

Total issuance – including $8 billion in the current financial year – is $35 billion. Maturities and repurchases are $41.1 billion, similar to what it forecast in December.

Its aim is to maintain New Zealand government bonds on issue at not less than 20 percent of gross domestic product over time. They currently stand at 28 percent but fall to 20.4 percent in the year to June 2021.

The DMO said the new April 2029 bond would launched via syndication “subject to market conditions” and said that inflation-indexed bonds issuance is expected to be around $1 billion of the $7 billion it will issue in the 2017/18 year.

It also said it plans to commence a repurchase programme of the March 15, 2019 nominal bond this year. It plans to repurchase up to $5 billion, depending on portfolio requirements and market conditions.

(BusinessDesk)

ends

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.