Dutch State updates the funding plan for 2025 and appoints the advisors for the upcoming 10-year and 15+year Dutch Direct Auction (DDA)
Based on the actual money market position as of year-end 2024, the borrowing requirement for 2025 is now estimated at 106.4 billion. This is €1.4 billion higher than the previous estimate. For the upcoming 10-year DDA, Jefferies, Citi Bank and HSBC have been appointed. The advisors for the 15+year DDA are ABN AMRO, Barclays and Bank of America.
Updated borrowing requirement for 2025
On Friday 13 December 2024, the DSTA presented its Outlook 2025. At that time, the borrowing requirement for 2025 was estimated at €105 billion. Based on the actual money market position as of year-end 2024, the borrowing requirement for 2025 is now estimated at €106.4 billion. This is €1.4 billion higher than announced at the Outlook event. This estimate is surrounded by uncertainty due to several factors in the government finances. Historically, this has led to a lower funding realization at the end of the year compared with the announcement in the beginning of the year.
The call on the capital market remains unaltered at € 40 billion.
|
Estimated borrowing requirement for 2025 |
Amount (in €bn) |
Difference compared to previous estimate |
|
Capital market redemptions 2025 |
19.9 |
0.0 |
|
Money market ultimo 2024 (excl. cash collateral) |
37.5 |
1.4 |
|
Cash deficit 2025* |
49.0** |
0.0 |
|
Total |
106.4 |
1.4 |
* A cash deficit is shown as a positive number because it increases the total borrowing requirement.
** The loan facility to TenneT in 2025 comprises € 14.2 billion of this amount
DSTA appoints the advisors for the upcoming 10-year and 15+year DDA
The DSTA has appointed Jefferies, Citi Bank and HSBC as its advisors for the upcoming DDA of the new 10-years benchmark bond, the DSL 15 July 2035, which will be auctioned later this quarter. As its advisors for the new 15+ year DSL via DDA, the DSTA has appointed ABN AMRO, Barclays and Bank of America. The advisors are selected based on their Primary Dealer ranking of 2024.
A new 10-year benchmark bond, the DSL 15 July 2035, will be launched by means of a DDA in February or March 2025. 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 launch the new 15+year DSL by means of a DDA later this year. The exact timing, maturity and size will be decided at a later stage in consultation with the DDA-advisors appointed for this DSL and the other Primary Dealers.