Publication of Outlook 2022, issuance calendar first quarter and advisors

News item | 16-12-2021 | 16:55

The full Outlook 2022, containing updates on the economic, budgetary and climate outlook and its policy framework can be found on the DSTAs website.

Borrowing requirement

The borrowing requirement for the DSTA in 2022 is estimated at € 74.5 billion. This estimate is surrounded by uncertainty concerning the development of the COVID-19 pandemic, the economic recovery and the budgetary impact for 2022 of the plans of the new government.  

Estimated borrowing requirement for 2022 (€ bn)
Capital market redemptions 2022	30.7
Money market ultimo 2021 (excl. cash collateral)	20.5
Cash deficit 2022*	23.3
Total	74.5

* A cash deficit is shown as a positive number because it increases the total borrowing requirement.

If an update of the estimated borrowing requirement is available, the DSTA will publish a press release. The first update of the borrowing requirement will be communicated in the beginning of January to reflect the cash realisations and net money market end 2021.

Issuance in 2022 will continue to contribute to the DSTA’s goal to lengthen the average maturity of the debt, swap and cash portfolio towards a minimum of eight years.

Capital market issuance in 2022

The DSTA foresees issuances of DSLs on the capital market for an approximate amount of € 45 billion (nominal amount). Fluctuations in the funding need will primarily be absorbed by the call on the money market. Only in a scenario in which the funding need turns out significantly lower than currently estimated, the call on the capital market might be reduced. In case the funding need turns out higher than € 74.5 bn, the DSTA could increase the call on both the money- and capital market.

The call on the capital market will consist of the following issuances:

• A significant increase in the outstanding amount of the Green DSL 15 January 2040 for around € 5 billion; possibly in one auction. The exact auction method and timing will be decided at a later stage;
• Launch of a new 10-year benchmark DSL (the DSL 15 July 2032) by means of a DDA;
• Launch of a new 30-year benchmark DSL by means of a DDA;
• Launch of a new 4- year DSL via the MTS platform;
• At least two tap auctions in the DSL 15 January 2029;

• DSL issuances for an amount of € 11 billion ‘to be determined’ in order to respond to market demand and promote liquidity.

DSL issuance	Indicative amounts (€ bn)
Green DSL Jan 2040	5
New 10-year DSL	12
New 30-year DSL	5
New DSL Jan 2026	8
Reopening DSL Jan 2029	4
To be determined	11
Total	45

Traditionally, DSL auctions are scheduled on the second and fourth Tuesday of the month. The DSTA will start with the launch of the new DSL 15 January 2026 through the MTS platform on 11 January 2022. On 25 January a tap auction for an existing DSL is planned. The exact details of the DSL to be tapped will be announced on the Wednesday prior to the issue date. The DSL 15 July 2032 will be launched by means of a DDA in February or March. The exact timing will be decided upon in consultation with the Primary Dealers.

DSL-issuance calendar first quarter 2022

Auction date	Details	Target volume (€ bn)
11 January	New DSL 15 January 2026	3 - 5
25 January	Tap of an existing DSL	To be announced*
4 auctions in February and March **	The following bonds are scheduled to be auctioned in February / March 2022:
	New 10-year bond: DSL 15 July 2032	4 - 6
	Tap of an existing DSL	To be announced*
	Reopening DSL 15 January 2029	1.5 – 2.5
	Tap of an existing DSL	To be announced*

* Target volume and other details will be announced at a later stage, but no later than the Wednesday prior to the auction date.

** Depending on the timing of the launch of the new DSL July 2032.

Note: announcement of all auction details is on the Wednesday prior to the auction (t-6).

Money market issuance in 2022

The DSTA will regularly issue Dutch Treasury Certificates (DTC) on the money market. Auction dates typically contain both a shorter-dated programme and a longer-dated programme. Auctions are held on the first and third Monday of the month.

DTC-issuance calendar first quarter 2022

Auction date	Settlement date	Shorter-dated programme	Longer-dated programme
3 January	5 January	28 April 2022	29 June 2022
17 January	19 January	30 May 2022	28 July 2022
7 February	9 February	28 April 2022	29 June 2022
21 February	23 February	30 May 2022	30 August 2022
7 March	9 March	29 June 2022	29 September 2022
21 March	23 March	30 May 2022	28 July 2022

Note: announcement of all auction details is on the Wednesday prior to the auction (t-5).

Advisors

The DSTA has appointed Barclays, HSBC and Jefferies as its advisors for the DDA of the new 10-year bond and Citi, Nomura and Nordea are appointed as advisors for the DDA of the new 30-year bond. ABN AMRO and Bank of America are appointed as green issuance advisors for the green issuance. The advisors are selected based on their Primary Dealer ranking of 2021.