Publication of Outlook 2023, issuance calendar first quarter and advisors

News item | 16-12-2022 | 16:30

The full Outlook 2023, containing updates on the economic, budgetary and climate outlook and its policy framework can be found on the DSTAs website.

Borrowing requirement

The preliminary funding need for the DSTA in 2023 is estimated to amount to approximately € 100 billion. However, this estimate is surrounded by a high degree of uncertainty due to several factors that impact government finances, such as the cap on energy prices, projected inflation and a slowdown in economic growth.

Estimated borrowing requirement for 2023		(€ bn)
Capital market redemptions 2023		31.6
Money market ultimo 2022 (excl. cash collateral)		36.3
Aggregate Cash deficit 2023*		33.6
Consisting of:
Deficit based on 2023 Budget Memorandum	26.3
Indicative impact energy price measures and price adjustment for (semi)collective sector	7.3
Total		101.5

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

At the beginning of January 2023 the DSTA will communicate a first update of the

borrowing requirement to reflect the net money market ultimo 2022.

Issuance in 2023 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 in 2025. The DSTA intends to have the average maturity of the portfolio at the end of 2023 at a minimum level of 7.9 years.

Capital market issuance in 2023

The DSTA foresees issuances of DSLs on the capital market for an approximate amount of € 50 billion (nominal amount). If the funding need turns out to be higher or lower than currently estimated, the DSTA could increase or reduce the call on both the money and capital markets.

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

• Launch of a new 10-year benchmark DSL (the DSL 15 July 2033) by means of a DDA;
• Launch of a new Green 20-year DSL by means of a DDA; the Green Bond Framework, updated in 2022, will form the basis for the allocation of proceeds of this bond. The exact timing and size will be decided at a later stage in consultation with the DDA-advisors appointed for this DSL and the Primary Dealers;
• Launch of a new 7-year benchmark DSL via the MTS platform;
• An increase in the outstanding amount of the DSL 15 January 2026 in the first half of 2023 from € 8.3 billion to around € 12 billion;
• DSL issuances for an amount of € 21 billion ‘to be determined’ in order to respond to market demand and promote liquidity.

DSL issuance	Indicative amounts (€ bn)
New 10-year DSL 2033	12
New Green 20-year DSL	5
New 7-year DSL	8
Reopening DSL Jan 2026	4
To be determined	21
Total	50

Traditionally, DSL auctions are scheduled on the second and fourth Tuesday of the month. The DSL 15 July 2033 will be launched by means of a DDA in February 2023. The exact timing will be decided upon in consultation with the Primary Dealers. Furthermore, the DSTA will reopen the DSL 15 January 2026 on 10 January. The remaining auction dates in this quarter will be used for the reopening of to be determined DSL.

DSL-issuance calendar first quarter 2023

Auction date	Details	Target volume (€ bn)
10 January 2023	Tap of the DSL 15 January 2026	2.5 – 3.5
24 January 2023	Tap of an existing DSL	To be announced*
2 auctions in February 2023*	The following bonds are scheduled to be auctioned in February 2023:
	New 10-year bond: DSL 15 July 2033	4-6
	Tap of an existing DSL	To be announced*
14 March 2023	Tap of an existing DSL	To be announced*
28 March 2023	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 (t-6).

Money market issuance in 2023

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. The only exception is the first auction in January, which has been postponed by one week due to its proximity to New Year’s Eve.

DTC-issuance calendar first quarter 2023

Auction date	Settlement date	Shorter-dated programme	Longer-dated programme
9 January 2023	11 January	30 March	30 May
16 January 2023	18 January	27 April	29 June
6 February 2023	8 February	30 May	28 July
20 February 2023	22 February	27 April	28 July
6 March 2023	8 March	30 May	30 August
20 March 2023	22 March	29 June	30 August

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. ABN AMRO, Citigroup and Rabobank are appointed as green issuance advisors for the green DDA. The advisors are selected based on their Primary Dealer ranking of 2022.

Press Inquiries

For inquiries about the Outlook and the funding plan for 2023, please contact Lena van der Priem, spokesperson for the DSTA.

• By telephone: +31 6 50 18 60 76
• By email: l.priem@minfin.nl