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

 

Massive demand for 2029 NZ govt bonds: $5B bid for $2B

Massive demand for 2029 NZ govt bonds: $5B bid for $2B on offer

By Rebecca Howard

March 13 (BusinessDesk) - The New Zealand Debt Management Office's sale of a new April 20, 2029, bond was 2 1/2 times overbid as investors looked to lock in attractive long-term interest rates ahead of what looks to be a gradual rise in global interest rates.

The DMO issued $2 billion of the 2029 bond via syndication after announcing plans to issue $1.5 billion to $2 billion. The bonds, which carry a coupon of 3 percent, were issued at a spread of 16 basis points over the yield on the existing April 15, 2027, nominal bond, at 3.135 percent. Total book size, within the initial pricing guidance range of 16 to 19 basis points, exceeded $5 billion. Settlement will occur on March 16, 2018, and further issuance of the new bond won't be made prior to July 2018, the DMO said.

"It was in line with what we were expecting. We were expecting good demand and a $5 billion order book is good demand," Sarah Vrede, director, Financial Operations at the DMO, told BusinessDesk.

While demand was strong, Vrede said the DMO didn't opt to issue more as "we didn't have the funding needs for more of them."

In December, the DMO lifted its issuance programme by $1 billion through June 2022 compared to its prior forecasts and reiterated plans to launch the new bond in the first half of this year. According to the DMO, the office will raise $7 billion every year through June 2022, bringing total issuance to $35 billion.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Launches NASA Satellites

On Sunday, December 16, 2018 UTC, Rocket Lab’s Electron launch vehicle successfully lifted off from Rocket Lab Launch Complex 1 on New Zealand’s Māhia Peninsula. More>>

ALSO:

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>

Environment Commissioner: Transparent Overseer Needed To Regulate Water Quality

Overseer was originally developed as a farm management tool to calculate nutrient loss but is increasingly being used by councils in regulation... “Confidence in Overseer can only be improved by opening up its workings to greater scrutiny.” More>>

ALSO: