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NZ government reduces size of bond tender programme

Contributor:
Fuseworks Media
Fuseworks Media
Bill English
Bill English

Wellington, May 20 NZPA - The Government intends to issue $12.5 billion of bonds in the year to June 30, 2011, which is $2b less than signalled in the December half-year update.

Finance Minister Bill English said government debt peaks earlier than previously forecast at 27 percent of gross domestic product in this budget.

The New Zealand Debt Management Office said it was considering re-introducing inflation-indexed bonds as part of its $12.5b programme. It was considering the most cost-effective issuance method for these bonds.

Introducing an inflation-indexed bond increased the range of debt instruments available to investors.

A new bond maturity, most likely March 2019, will also be introduced.

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