By Emese Bartha
The Netherlands' total borrowing requirement for 2025 will amount to around 105 billion euros ($109.90 billion), the Dutch State Treasury Agency said in its borrowing program on Friday.
This estimate, however, is surrounded by a high degree of uncertainty due to several factors in the government finances, it said.
The DSTA foresees around 40 billion euros in government bond, or DSL, issuance next year, it said.
"Downward revisions in the funding plan are historically more likely, given the way the estimate is constructed," it said.
Given the uncertainty in the overall funding during the year, the DSTA will use money market instruments in a flexible way to accommodate uncertainty to ensure the stability of its government bond issuance target, it said.
Capital market redemptions will amount to 19.9 billion euros in 2025, it said.
In terms of new government bonds, the DSTA plans to launch a new 10-year, July 2035-dated DSL and an ultralong DSL with more than 15 years of maturity via Dutch Direct Auction. It plans to issue 5 billion euros in each of these two new bonds.
In a DDA, the DSTA acts as the sole bookrunner of the issue.
The new 10-year DSL will be launched either in February or March, the DSTA said. In the first quarter of 2025 five bond auction dates will be used.
In the whole of 2025, following the launch, the DSTA plans to issue a further 7 billion euros via reopenings of the new July 2035 DSL.
Issuance in one of the green DSLs is expected between 2 billion euros and 4 billion euros in 2025, it said. The Netherlands' two green DSLs have maturities of January 2040 and January 2044.
The reopening of the January 2054 DSL will be for a volume of 1.5 billion euros to 2 billion euros.
Issuance in yet-to-be determined bonds will amount to 17 billion euros to 19 billion euros.
Write to Emese Bartha at emese.bartha@wsj.com
(END) Dow Jones Newswires
12-13-24 1100ET
