Dutch State reopens the DSL January 2030, updates the borrowing requirement for 2024 and appoints the advisors for the upcoming 10-year and 30-year Dutch Direct Auction (DDA)

News item | 03-01-2024 | 13:00

Re-opening DSL 15 January 2030 on 9 January 2024

On Tuesday 9 January 2024, the DSTA will reopen the ‘DSL 2.50% 15 January 2030’.
 

The characteristics of this bond are:

Maturity date	15 January 2030
Coupon	2.50%
Issue date	9 January 2024
Settlement date	11 January 2024
Target amount	€2.0 to €2.5 billion
Current outstanding amount	€7,800,000,000
First issue of this bond	4 April 2023

On the issue date at 10 am (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. Prior to the auction, at 9.15 am (CET), each Primary Dealer will be offered the possibility to take up 3% of the maximum targeted range against the average price set during the auction. The Primary Dealers can accept this offer via Bloomberg chat until 9.20 am (CET). If a Primary Dealer makes use of this possibility, the transaction is binding after 9.20 am (CET), and the nominal amount so pre-allocated will be taken into account in the total volume issued at the auction.

Professional and private investors may participate in the auction through the Primary Dealers. The Primary Dealers and the borrowing conditions are available on the website. Primary Dealers have the right (under the applicable Primary Dealer 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 2024

On Friday 15 December, the DSTA presented its Outlook 2024. At that time, the borrowing requirement for 2024 was estimated at €75.7 billion. Based on the actual money market position as of year-end 2023, the borrowing requirement for 2024 is now estimated at €76.8 billion. This is €1.1 billion higher than the previous estimate. 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.

As announced in the Outlook 2024, the DSTA expects to issue a nominal amount of around €40 billion on the capital market in 2024.

Estimated borrowing requirement for 2024	Amount (in €bn)	Difference compared to previous estimate (in €bn.)
Capital market redemptions 2024	32.8	0.0
Money market ultimo 2023 (excl. cash collateral)	25.5	1.1
Cash deficit 2024*	18.5	0.0
Total	76.8	1.1

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

DSTA appoints the advisors for the upcoming 10-year and 30-year DDA

The DSTA has appointed Jefferies, Goldman Sachs and HSBC as its advisors for the upcoming DDA of the new 10-years benchmark bond, the DSL 15 July 2034, which will be auctioned later this quarter. As its advisors for the DDA of the DSL 15 January 2054, the DSTA has appointed ABN AMRO, Barclays and Citibank. The advisors are selected based on their Primary Dealer ranking of 2023.

A new 10-year benchmark bond, the DSL 15 July 2034, will be launched by means of a DDA in February or March 2024. The DSTA is committed to bring the outstanding volume of this bond to a minimum of around €12 billion by the end of the year.

The DSTA will reopen the 30-year benchmark bond, the DSL 15 January 2054, by means of a DDA later this year. The exact timing and size will be decided at a later stage in consultation with the DDA-advisors appointed for this DSL and the other Primary Dealers.