In conjunction with the Half Year Economic and Fiscal Update 2017, the Treasury’s New Zealand Debt Management Office has updated its New Zealand Government Bond (NZGB) programme.
The 2017/18 NZGB programme is unchanged from that published at the Pre-Election Economic and Fiscal Update (PREFU) 2017. The programme for 2020/21 has increased to $7.0 billion; $1.0 billion higher than that published at PREFU.
A $7.0 billion bond programme is forecast for the additional year added to the forecast period (2021/22).
The Government recognises the importance of maintaining a sustainable NZGB market and intends to maintain levels of NZGBs on issue at not less than 20 percent of GDP over time.
|Year ending 30 June (face value)||2018||2019||2020||2021||2022||Total|
|Gross NZGB issuance ($ billion)||7.0||7.0||7.0||7.0||7.0||35.0|
|NZGB maturities and repurchases ($ billion)||9.1||7.9||7.3||11.1||0.0||35.3|
|Net NZGB issuance ($ billion)||-2.1||-0.9||-0.3||-4.1||7.0||-0.3|
|NZGBs on issue ($ billion)||72.3||71.4||71.2||67.1||74.1||n/a|
|NZGBs on issue (percent of GDP)||25.2%||23.7%||22.5%||20.2%||21.4%||n/a|
- As announced on 6 November 2017, a new 20 April 2029 nominal bond is planned to be launched, by syndication, between 1 January 2018 and 30 June 2018 (subject to market conditions).
- As announced at Budget 2017, a repurchase programme of the 15 March 2019 nominal bond is planned to commence in the 2017/2018 fiscal year. Up to $5.0 billion of these bonds are planned to be repurchased prior to 30 June 2018 (subject to portfolio requirements and market conditions).
Sarah Vrede | Director, Financial Operations and Head of New Zealand Debt Management Office | The Treasury
Tel: +64 4 917 6071
Murray Jones | Head of Portfolio Management | New Zealand Debt Management Office | The Treasury
Tel: +64 4 917 6075