The Netherlands' Borrowing Needs in 2024

The Dutch State Treasury Agency (DSTA) has estimated that the Netherlands will require 75.7 billion euros ($83.22 billion) in borrowing for the year 2024. However, the upcoming elections in November 2023 and the subsequent formation of a new government may impact the actual funding requirements.

First Update in January 2024

The DSTA plans to provide an initial update on the borrowing requirement for the year at the beginning of January. This update will take into account the net money market ultimo for 2023.

Funding Plans

To meet their borrowing needs, the DSTA intends to issue EUR40 billion in capital markets through government bonds, also known as DSLs. Any fluctuations in the funding requirements will primarily be managed through money market instruments.

Planned Bond Issuances

Next year, the DSTA plans to launch a new DSL, which will mature in July 2034. The issuance of this bond is expected to be between EUR4 billion and EUR6 billion through the Dutch Direct Auction (DDA). The final outstanding amount of this bond is projected to be EUR12 billion.

Additionally, the DSTA plans to tap into the January 2054 DSL by issuing EUR5 billion, also through a DDA. They will also reopen two existing bonds: the January 2044-dated green DSL and the January 2030-dated seven-year benchmark DSL. Each of these bonds will have an issuance of EUR4 billion in the coming year.

"To Be Determined" Issuance

The DSTA has allocated EUR15 billion for "to be determined" issuance. This means that they will decide on which specific bonds to issue closer to their respective tap dates.