Publication of Outlook 2018 and issuance calendar first quarter 2018

News item | 15-12-2017 | 16:23

Momentarily, the funding need for 2018 is estimated at € 53.5 bn. The estimated funding need consists of capital market redemptions, the expected outstanding volume of the money market at the end of 2017 and the expected cash balance for 2018.

Borrowing requirement in 2018 (€ bn)
Capital market redemptions in 2018	38.5
Outstanding money market instruments ultimo 2017	18.6
Expected cash balance 2018 (-=surplus)	-3.6
Total	53.5

In 2018, the DSTA intends to raise between € 23 bn and € 29 bn in the capital market. Given the current estimate of the funding need the outstanding volume of the money market at the end of 2018 will be between € 24.5 bn and € 30.5 bn. The money market acts as a primary buffer for accommodating changes in the funding need and the target range for the capital market will provide extra flexibility.

Funding  2018 (€ bn)
Capital market	23 - 29
Money market ultimo 2018	24.5 – 30.5
Total	53.5

Due to the healthy state of Dutch public finances, the DSTA faces a structurally lower funding need than before. Consequently, the DSTA has decided to slightly lower the minimum benchmark volume of newly issued Dutch State Loans (DSLs). For newly issued DSLs with a maturity up to and including 10 years the minimum volume outstanding will be € 12 bn within 12 months of the launch. If the funding need permits, the DSTA has the possibility to increase volumes further, towards the previous benchmark size of € 15 bn. For DSLs with a maturity longer than ten years the DSTA stays committed to bring the outstanding amount to € 10 bn. The minimum benchmark volume of the DSL 15 January 2024 that was launched in 2017 will remain €15 bn, as announced in the Outlook 2017.

To fulfil its planned call on the capital market the DSTA will be launching a new 10-year DSL for at least € 12 bn. Moreover, the DSL 15 January 2024, which was launched last year, will be reopened to reach an outstanding volume of at least € 15 bn. Finally, the DSTA will issue between € 2 bn and € 5 bn in longer dated DSL(s). This will be done through the launch of a new longer dated bond (in the 15- to 30-year segment) or through the reopening of longer dated off-the-run DSLs.

Capital market issuance in 2018	Indicative amounts (€ bn)
New 10-year DSL (2028)	12 - 15
On-the-run DSL 15 January 2024	9
Issuance of longer dated DLSs*	2 – 5
Total	23 - 29

* This will be done through the launch of a new longer dated bond (in the 15- to 30-year segment) or through the reopening of longer dated off-the-run DSLs.

As usual, the borrowing requirement and the funding plan will be updated during the year whenever new information becomes available. On 3 January 2018 the first update will be published. More information is available in the Outlook 2018.

Issuance calendar first quarter 2018

Today the DSTA also published the DSL and DTC issuance calendars for the first quarter of 2018. The DSTA will start its capital market issuance in 2018 with the reopening of the DSL 15 January 2024. In February or March the new 10-year DSL will be launched via a Dutch Direct Auction (DDA). The exact date and details for the DDA will be announced in due time.

Auction date	Details	Target volume (€ bn)
9 January	Reopening DSL 15 January 2024	1.5 - 2.5
February/March*	DDA: new 10-year bond: DSL 15 July 2028	To be announced

* DDA-date and target volume announced in due time.

The DTC calendar follows the usual pattern, with auctions held on the first and third Monday of every month. Just like in 2017, on every first Monday of the month a 6-month DTC programme will be issued and on every third Monday a 3-month as well as a 6-month DTC programme will be issued.

Auction date	Settlement date	3-month programme	6-month programme
8 January*	10 January		29 June 2018
15 January	17 January	29 March 2018	29 June 2018
5 February	7 February		31 July 2018
19 February	21 February	30 April 2018	31 July 2018
5 March	7 March		31 August 2018
19 March	21 March	31 May 2018	31 August 2018

* Second instead of first Monday of the month due to New Year’s day.

Note: shaded fields indicate new programmes; announcement of all auction details is on the Wednesday prior to the auction (t-5).