Funding plan 2020

Currently, the funding need for 2020 is estimated at € 42.0 bn. The estimated funding need consists of capital market redemptions, the expected outstanding volume of the money market at the end of 2019 and the expected cash balance for 2020.

Borrowing requirement in 2020 (€ bn)

Capital market redemptions in 2020

29.9

Outstanding money market instruments ultimo 2019

13.6

Expected cash balance 2020 (-=surplus)

-1.5

Total

42.0

To ensure liquidity across the curve, DSTA has sought to balance the call on the capital market and the money market in 2020. The DSTA commits to issuing DSLs on the capital market within a range of € 21-26 bn. The size of the money market at year-end is intended to be around € 16-18 bn. As is regular practice, if the funding need turns out significantly lower (higher) than has now been estimated, the actual size of the money market at year-end could end up below or above this range. Regardless of the ultimate funding need, the DSTA intends to maintain a DTC-programme with a minimum size of around € 16 bn. The DSTA has the possibility to put excess cash reserves on a deposit with the central bank.

Funding 2020 (€ bn)

Capital market issuances (DSLs)

21-26

Money market ultimo 2019

16-18

Total

42.0

To fulfil its planned call on the capital market, the DSTA will issue a new 10-year DSL - the DSL 15 July 2030 - for approximately € 12 bn. This 10-year DSL will be issued by means of a Dutch Direct Auction (DDA). The DSTA will also issue a minimum of approximately € 2 bn through at least two tap auctions in the Green bond, that was launched on 21 May 2019 with an initial issuance size of € 6.0 bn. Thirdly, the DSTA will issue a new DSL in the 30-year segment. The DSTA is committed to issuing a minimum of approximately € 4 bn in 2020 in this new 30-year DSL. This will be done by means of the DDA and possibly one tap auction. The exact maturity date of the bond and the issuance date will be decided upon in close consultation with Primary Dealers. Within a few years after the initial issuance, the outstanding volume will be increased to a benchmark size of approximately € 10 bn, as is regular practice for longer-dated DSLs. Finally, a substantial part of the call on the capital market, € 3-8 bn, is still undetermined. This offers the DSTA more flexibility in order to be able to better respond to market demand and to promote liquidity across the curve. The DSTA has the option to re-open off-the-run DSLs in all maturity buckets, irrespective of the already existing outstanding volumes. Moreover, the DSTA could decide to issue more than the indicated volumes in the on-the-run 10 year DSL, the Green bond or the new 30-year DSL.

DSL issuance

Indicative amounts

New 10-year DSL (DSL 15 July 2030)

12

Reopening 20-year Green bond (15 January 2040)

2

New 30-year DSL

4

To be determined

3–8

Total DSL funding

21-26

As usual, the borrowing requirement and the funding plan will be updated throughout the year when new information becomes available. In the beginning of January the first update will be published. More information is available in the Outlook 2020.