RPT-New Zealand lowers 2013/14 debt issuance plans
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WELLINGTON Dec 17 (Reuters) - The New Zealand government will decrease the amount of bonds it issues this year by NZ$2 billion ($1.65 billion) from its initial expectations and plans to buy back some bonds from the market, due to a reduction in its forecast funding requirements.
The New Zealand Debt Management Office on Tuesday lowered its gross bond issuance plans for the year to June 30 to NZ$8 billion from NZ$10 billion projected in its initial budget in May.
It also cut issuance plans by NZ$1 billion each for 2014/15 and 2016/17, and said it would repurchase up to NZ$3 billion in April 2015 bonds in the second half of the current year via reverse tap tenders, subject to market conditions.
The DMO confirmed it was on track to issuing NZ$5 billion in index-linked debt in 2013/14, having already offered NZ$4.2 billion to the market so far this year.
It said it would issue a total of NZ$800 million in nominal and "linker" debt in the quarter ending March 31, and that debt would be offered at four separate tenders on a roughly fortnightly basis beginning Feb. 13.
Given its expectations for lower funding requirements, the DMO also said it would delay the launch of an April 2027 bond, which had previously been planned for this year, adding that the introduction of the new bond would be delayed until 2014/15 at the earliest.
The government expects net debt to peak at 26.5 percent of GDP in 2014/15, down from its previous estimate of 28.7 percent. ($1 = 1.2110 New Zealand dollars) (Reporting by Naomi Tajitsu; Editing by Shri Navaratnam)
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