Dutch State reopens Green bond: DSL 15 January 2040 and updates borrowing requirement for 2020
On Tuesday 14 January 2020, the Dutch State Treasury Agency will reopen the ‘DSL 0.50% 15 January 2040’.
The characteristics if this bond are:
|
Maturity date |
15 January 2040 |
|
Coupon |
0.50% |
|
Issue date |
14 January 2020 |
|
Settlement date |
16 January 2020 |
|
Target amount |
€ 0.75 to € 1.25 billion |
|
Current outstanding amount |
€ 5,985,004,000 |
|
First issue of this bond |
21 May 2019 |
The proceeds of the Green Bond will be allocated to green, or climate-related expenditures and investments undertaken by the Dutch government, as described in the Green Bond Framework.
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 the 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 2020
On 13 December 2019 the DSTA presented its Outlook 2020, including the funding plan for 2020. At that time the preliminary borrowing requirement for 2020 was estimated at € 42.0 billion. Based on the figures at year-end 2019, the borrowing requirement for 2020 is now estimated at € 42.7 billion. This slightly higher than expected funding need is due to a change in the cash position at the end of 2019.
As announced in the Outlook 2020, € 21 to € 26 billion of the total borrowing requirement for 2020 will be covered by DSL issuances on the capital market. The remaining borrowing requirement will be funded on the money market.
|
Borrowing requirement 2020 |
(€ bn.) |
|
Capital market redemptions 2020 |
29.9 |
|
Money market ultimo 2019 (excl. cash collateral) |
14.3 |
|
Cash surplus 2020 |
-1.5 |
|
Total |
42.7 |
|
Call on capital market and money market 2020 |
(€ bn.) |
|
Capital market issuance (DSLs) |
21-26 |
|
Money market ultimo 2020 (excl. cash collateral) |
16-18 |
|
Total |
42.7 |