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.
BusinessDesk.co.nz
Comments from our readers
No comments yet
Add your comment:
Related News
Burger Fuel raises $2 mln in placement to Milford funds
Canadian pension fund likes NZ forest growing conditions
NZ annual current account gap narrows in 3Q as trade balance shrinks
Wellington Drive shareholders approve $2.1M placement, guidance affirmed
SkyCity to spend A$300M on Adelaide Casino redevelopment
Energy Mad lowers FY guidance, gets $1M from SuperLife
NZ dollar drops vs. euro after Greek upgrade, Spanish debt sale
OceanaGold to lift gold output as Didipio comes on stream
While you were sleeping: Optimism on US budget talks
Rugby World Cup provides $573 mln fillip to NZ economy, report shows
varez ward solar storms uganda the parent trap invisible children kony 2012 space weather sunspots
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.