Disclaimer - New Zealand Debt Management Office Web Site
- The information on this web site is issued by the New Zealand Debt Management Office (NZDMO) for informational purposes. It does not contain and is not an invitation or offer to buy or sell securities. Insofar as this web site refers to any offerings of securities, such offerings are directed to countries other than the United States and no offerings are made to persons accessing this web site within Australia.
- The NZDMO takes reasonable measures to ensure the quality of the data and other information produced by the NZDMO that is made available on this web site. However, the NZDMO makes no warranty, express or implied, nor assumes any legal liability or responsibility for the accuracy, correctness, completeness or use of any information that is available on or through this web site nor represents that its use would not infringe on privately owned rights. Further information contained on this web site is subject to change, completion or amendment without notice. Nothing contained on this web site is, or shall be relied on as a promise or representation by the New Zealand Government or the NZDMO as to the past or future. The contents of this web site should not be construed as legal, business or tax advice.
- This is a protected New Zealand Government web site. It is unlawful to intentionally cause damage to it or to any NZDMO electronic facility or data through the knowing transmission of any program, information, code, or command.
- The NZDMO systems to which this web site connects and related equipment are subject to monitoring. Information regarding users may be obtained and disclosed to authorised personnel, including law enforcement authorities, for official purposes. Access to or use of this web site constitutes consent to these terms.
- Reference to any specific commercial product, process, or service by trade name, trademark, manufacture, or otherwise does not constitute an endorsement, recommendation, or favouring by the New Zealand government or the NZDMO.
- For convenience and informational purposes only, the NZDMO server provides links to other web sites. These sites may contain information that is the copyright of third parties and subject to restrictions on reuse. Permission to use copyrighted materials must be obtained from the copyright owner and cannot be obtained from the NZDMO.
- The NZDMO is not responsible for the content of other web sites linked to or referenced from the NZDMO site. The NZDMO neither endorses the information, content, presentation, or accuracy of such web sites, nor makes any warranty, express or implied, regarding these external web sites.
- Each page on this web site must be read in conjunction with this disclaimer and any other disclaimer that forms part of it.
- By clicking on "Acknowledge and Hide Disclaimer" below, I confirm that I am either:
- resident outside of the European Economic Area; or
- person acting solely in my capacity as an authorised representative of an entity falling within one of the following descriptions:
- a legal entity authorised or regulated to operate in the financial markets, including: a credit institution, or investment firm, an other authorised or regulated financial institution, or insurance company, a collective investment scheme, a collective scheme management company, a pension fund, a pension fund management company, a commodity dealer, or an entity not so authorised or regulated but whose corporate purpose is solely to invest in securities;
- a national or regional government, a central bank, an international or supranational institution such as the International Monetary Fund, the European Central Bank, the European Investment Bank or other similar international organisations; or
- a legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts.
Disclaimer: The information on this web site is issued by the New Zealand Debt Management Office (NZDMO) for informational purposes. It does not contain and is not an invitation or offer to buy or sell securities. Each page on this web site must be read in conjunction with the disclaimer at http://www.nzdmo.govt.nz.
Cancellation of Bond Tender Scheduled for 16 October 2008Media Statement
14 October 2008
New Zealand Debt Management Office
Cancellation of Bond Tender Scheduled for 16 October 2008
The New Zealand Debt Management Office (NZDMO) today announced that the government bond tender scheduled for 16 October 2008 has been cancelled.
"The government bond market has become quite volatile in recent days. We believe it is prudent to defer issuance until market conditions have settled," said Mr Philip Combes, Treasurer, NZDMO.
The next bond tender is scheduled for 30 October 2008.
The NZDMO will continue with its flexible arrangements, which include the ability to issue bonds via tap tenders should demand occur outside the regular tender schedule.
Questions and Answers
What is a government bond?
New Zealand government bonds are wholesale fixed-term debt securities issued by the Crown to registered bidders in periodic government bond tenders. Government bonds have an initial maturity of one year or more.
Only bidders who are registered for this purpose with the New Zealand Debt Management Office may place bids for New Zealand Government Bonds. The minimum denomination is $1,000,000 (Principal) and in multiples of $1,000,000 (Principal) thereafter.
New Zealand Government Bonds may be purchased by members of the New Zealand public only if a successful bidder decides to on-sell their New Zealand Government Bonds. Any offer or on-sale of New Zealand Government Bonds to members of the New Zealand public must be made under the New Zealand Government Bonds Investment Statement which is available on request from email@example.com or firstname.lastname@example.org. The minimum amount for purchase by a member of the public is $10,000 and multiples of $1,000 thereafter.
How often are they issued?
Bonds are offered on a fortnightly basis. The Debt Management Office also recently announced its ability to issue “tap tenders” from 1 July 2008, which can be issued at short notice outside of that cycle. To date, five tap tenders have been undertaken.
Why have you cancelled today’s issue?
Consultation with market participants indicated that there had been recent selling of government bonds by retail holders. Market participants also advised that demand for bonds was likely to be temporarily reduced while investors sought further details of the deposit guarantee schemes announced by the Australian and New Zealand governments over the weekend. This is a temporary, one-off set of circumstances that will be resolved by the time of the next scheduled government bond tender on 30 October 2008.
What does this mean for the Government’s ability to raise funds in this way?
Today’s notice of cancellation does not suggest an inability to raise funds via bonds. The decision is a practical one, based on our recognition that it may not be prudent to continue with the bond tender solely for this round because of the temporary, one-off set of circumstances described above. The next bond tender is scheduled for 30 October 2008.
It should be noted that DMO’s issue of a Treasury Bill tender (for $200m) went very well today. Treasury Bills are short term (e.g. one year or less) wholesale fixed-term debt securities issued by the Crown to registered bidders in weekly tenders.
Will you issue bonds at the next scheduled time (fortnight)?
Yes, the intention is that another government bond tender will be held on 30 October 2008.
Have you cancelled an issue before?
While the cancellation is not common, it is not unprecedented. The DMO cancelled a bond issue in 2005, for example.
How do you decide to take this sort of action? Is there a process that is worked through, or is it a judgement call? Who makes the decision?
It is an operational decision made by the Treasurer of the Debt Management Office. It follows consultation with market participants (e.g. major domestic and international banks that regularly bid in government bond tenders, as well as some other domestic investors) and a judgement is made after considering their feedback.
Tel: +64 4 917 6133
Andrew Turner | Head of Portfolio Management
Tel: +64 4 917 6071