Dutch State reopens the DSL 2026 and updates the borrowing requirement for 2023
Based on the actual money market position as at year-end 2022, the borrowing requirement for 2023 is now estimated at € 99.7 billion. This is € 1.8 billion lower than the previous estimate. The first Dutch State Loan issuance of this year by the Dutch State Treasury Agency (DSTA) will be the reopening of the ‘DSL 0.00% 15 January 2026’.
Reopening of DSL 2026 on 10 January 2023
On Tuesday 10 January 2023, the DSTA reopens the ‘DSL 0.00% 15 January 2026’.
The characteristics of this bond are:
|
Maturity date |
15 January 2026 |
|
Coupon |
0.00% |
|
Issue date |
10 January 2023 |
|
Settlement date |
12 January 2023 |
|
Target amount |
€ 2.5 to € 3.5 billion |
|
Current outstanding amount |
€ 8,303,000,000 |
|
First issue of this bond |
11 January 2022 |
On the issue date at 10 a.m. (CET), the DSTA will announce the price at which Primary Dealers can buy the bond. 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 borrowing conditions of this bond and an overview of the current Primary Dealers are available on the website. Primary Dealers have the right 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 2023
On Friday 16 December, the DSTA presented its Outlook 2023. At that time, the borrowing requirement for 2023 was estimated at € 101.5 billion. Based on the actual money market position as at year-end 2022, the borrowing requirement for 2023 is now estimated at € 99.7 billion. This is € 1.8 billion lower than the previous estimate. The estimated borrowing requirement is still 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 possible slowdown in economic growth.
As announced in the Outlook 2023, the DSTA expects to issue a nominal amount of around € 50 billion on the capital market in 2023.
|
Estimated borrowing requirement for 2023 |
Amount (in € bn) |
Difference compared to previous estimate (in € bn.) |
|
Capital market redemptions 2023 |
31.6 |
- |
|
Money market ultimo 2022 (excl. cash collateral) |
34.5 |
-1.8 |
|
Cash deficit 2023* |
33.6 |
- |
|
Consisting of: |
||
|
26.3 |
- |
|
7.3 |
- |
|
Total |
99.7 |
- 1.8 |
* A cash deficit is shown as a positive number because it increases the total borrowing requirement.