Dutch State reopens DSL 2033 and updates funding requirement for 2016
On Tuesday 12 January 2016, the Dutch State Treasury Agency will reopen the DSL 2.5% 15 January 2033. The characteristics of this bond are:
|
Maturity date |
15 January 2033 |
|
Coupon |
2.5% |
|
Issue date |
Tuesday 12 January 2016 |
|
Settlement date |
Thursday 14 January 2016 |
|
Target amount |
€ 1.0 to € 1.5 billion |
|
Current outstanding amount |
€ 11,103,900,000 |
|
First issue of this bond |
6 March 2012 |
On the issue date at 10 a.m. (CET), the DSTA will announce the price at which Primary Dealers can buy the issue. The issuance will take the form of a tap auction, during which the DSTA may revise the price at any time. The price will be announced on the screens of MTS Netherlands and Bloomberg DSTA. Professional and private investors may participate in the auction through the Primary Dealers. The list of Primary Dealers and the borrowing requirements are available on this website.
Primary Dealers have the right (under the usual conditions) to use the “non-comp” facility after the auction has been closed. Liquidity of the bond will be guaranteed through a repo facility available to the Primary Dealers.
Updated borrowing requirement for 2016
On 11 December 2015 the DSTA presented its Outlook 2016, including the funding plan for 2016. At that time the preliminary borrowing requirement for 2016 was estimated at € 78.8 billion. Based on the figures at year-end 2015, the borrowing requirement for 2016 is now estimated at € 70.3 billion. This lower than expected funding need is mostly due to a lower money market at the end of 2015. The money market level excluding cash collateral, stood at € 15.2 billion at the end of 2015, instead of the expected € 22.4 billion. This can be explained by the fact that the cash deficit in 2015 came out lower than the latest official estimate.
As announced in the Outlook 2016, € 25 to € 30 billion of the total borrowing requirement for 2016 will be covered by DSL issuances on the capital market. The remaining borrowing requirement will be funded on the money market.
|
Borrowing requirement 2016 |
(€ bn) |
|
Capital market redemptions 2016 |
28.1 |
|
Money market ultimate 2015 (excl cash collateral)* |
15.2 |
|
Cash collateral ultimate 2015 |
19.4 |
|
Cash deficit 2016 |
7.6 |
|
Total |
70.3 |
|
Funding in 2016 |
(€ bn) |
|
Capital market funding |
25.0 – 30.0 |
|
Money market ultimate 2016 |
40.3 - 45.3 |
|
... of which money market instruments |
20.9 – 25.9 |
|
... of which cash collateral |
19.4 |
|
Total |
70.3 |