Publication of Outlook 2024, issuance calendar first quarter and advisors
Today the DSTA presents its Outlook for 2024 including its annual funding plan for 2024 and the issuance calendar for the first quarter. The DSTA also announced the advisors for the Dutch Direct Auctions in 2024.
The full Outlook 2024, containing updates on the economic, budgetary and climate outlook and its policy framework can be found on the DSTA’s website.
Borrowing requirement
The preliminary funding need for the DSTA in 2024 is currently estimated to amount to approximately € 75.7 billion. However, this estimate is surrounded by a high degree of uncertainty due to several factors in the government finances. The elections of November 2023 and the subsequent formation of a new government may have an impact on the actual funding need.
|
Estimated borrowing requirement for 2024 |
Amount |
|
Capital market redemptions 2024 |
32.8 |
|
Money market ultimo 2023 (excl. cash collateral) |
24.4 |
|
Cash deficit 2024* |
18.5 |
|
Total |
75.7 |
* A cash deficit is shown as a positive number because it increases the total borrowing requirement.
At the beginning of January 2024, we will communicate a first update of the borrowing requirement to reflect the net money market ultimo 2023.
Issuances in 2024 will continue to contribute to the DSTA’s goal to maintain the average maturity of the debt, swap and cash portfolio at a minimum of eight years until 2025. The DSTA intends to have the average maturity of the portfolio at the end of 2024 at a minimum level of 8.0 years.
Capital market issuance in 2024
The DSTA foresees issuances of DSLs on the capital market for an amount of around € 40 billion (in nominal amount). Fluctuations in the funding need will primarily be absorbed by the call on the money market. However, the DSTA also commits to maintain liquidity in the money market. Therefore, in case of a significantly lower funding need, the call on the capital market could also be reduced.
The call on the capital market will consist of the following issuances:
- Launch of a new 10-year benchmark DSL (the DSL 15 July 2034) by means of a Dutch Direct Auction (DDA);
- Reopening of the 30-year DSL 2054 by means of a DDA;
- Reopening of the 20-year Green DSL 15 January 2044;
- Reopening of the 7-year benchmark bond DSL 15 January 2030;
- “to be determined” DSL issuances for an amount of € 15 billion in order to respond to market demand and promote liquidity.
Moreover, the DSTA could also decide to issue more than the indicated volumes in the benchmark DSLs that are to be launched or re-opened in 2024.
|
DSL issuance |
Indicative amounts (€bn) |
|
New 10-year DSL July 2034 |
12 |
|
DSL January 2054 (via DDA) |
5 |
|
Reopening Green DSL January 2044 |
4 |
|
Reopening DSL January 2030 |
4 |
|
DSL – to be determined |
15 |
|
Total DSL funding |
40 |
Traditionally, DSL auctions are scheduled on the second and fourth Tuesday of the month. In the first quarter of 2024 all six auction dates will be used. The DSTA will start the year with a tap auction of the DSL 2.50% 15 January 2030 on 9 January 2024 with a targeted volume of € 2 to € 2.5 billion. Moreover, the DSTA will launch the new 10-year DSL (the DSL 15 July 2034) by means of a DDA in the first quarter. The exact date of the auction will be announced at a later stage.
All other possible issuance dates in this period will be used to reopen existing DSLs.
DSL-issuance calendar first quarter 2024
|
Auction date |
Details |
Target volume (€ bn) |
|
|
9 January 2024 |
Reopening DSL 15 January 2030 |
2 – 2.5 |
|
|
23 January 2024 |
Reopening of an existing DSL |
To be announced* |
|
|
The following bonds are scheduled to be auctioned in February and March of 2024 |
|||
|
New 10-year bond: DSL 15 July 2034 |
4 – 6 |
||
|
Reopening Green DSL 15 January 2044 |
To be announced* |
||
|
Reopening of an existing DSL |
To be announced* |
||
|
Reopening 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 2024
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 New Year’s Day on Monday.
DTC-issuance calendar first quarter 2024
|
Auction date |
Settlement date |
Shorter-dated programme |
Longer-dated programme |
|
8 January 2024 |
10 January 2024 |
27 March 2024 |
27 June 2024 |
|
15 January 2024 |
17 January 2024 |
29 April 2024 |
27 June 2024 |
|
5 February 2024 |
7 February 2024 |
30 May 2024 |
30 July 2024 |
|
19 February 2024 |
21 February 2024 |
29 April 2024 |
30 July 2024 |
|
4 March 2024 |
6 March 2024 |
27 June 2024 |
29 August 2024 |
|
18 March 2024 |
20 March 2024 |
30 May 2024 |
29 August 2024 |
Note: announcement of all auction details is on the Wednesday prior to the auction (t-5).
Advisors
The DSTA has appointed ABN AMRO, Barclays, Citigroup, Jefferies, Goldman Sachs and HSBC as its advisors for the Dutch Direct Auctions in the upcoming calender year. The advisors are selected based on their Primary Dealer ranking of 2023.
Press Inquiries
For inquiries about the Outlook and the funding plan for 2024, please contact Lena van der Priem, spokesperson for the DSTA.
By telephone: +31 6 50 18 60 76 / by email: l.priem@minfin.nl