24 May 2012
Borrowing Programme $3 billion Lower over Forecast Period
In conjunction with the Budget 2012, the New Zealand Debt Management Office (NZDMO) has updated its debt issuance
programme. The total borrowing programme, which includes the issuance of both domestic bonds and Treasury bills, will be
reduced by $3 billion over the forecast period ending June 2016, relative to plans outlined by the NZDMO at the
Pre-election Economic and Fiscal Update (PREFU) in October 2011.
Details of today’s announcements are:
• the 2011/12 bond programme increases by $1.5 billion to allow for issuance of up to $15 billion
• the 2012/13 bond programme increases by $1.5 billion to allow for issuance of up to $13.5 billion
• bond programmes over the remainder of the forecast period are expected to be $2 billion lower
• the inclusion of up to $2 billion of inflation-indexed bond issuance in each of the 2012/13 and 2013/14 bond
programmes, and
• a reduction of up to $4 billion of Treasury bill outstandings over the forecast period.
The increase in the 2011/12 bond programme will provide operational flexibility to issue additional bonds should there
be an increase in demand prior to the end of the fiscal year. Any such additional issuance, together with the increase
in the 2012/13 bond programme, will be used to reduce Treasury bill outstandings from $9 billion to $5 billion.
The NZDMO intends to consult with market participants on the operational aspects of these announcements in the near
term.
Forecast Gross and Net Debt Issuance
ENDS