Issuance strategy

Domestic borrowing

In light of the recent initiatives taken by the Danish Government to mitigate the consequences of COVID-19, the domestic government bond issuance target for 2020 is increased from kr. 75 to 125 billion. The central government's on-the-run issues include nominal bonds with maturities between 2 and 30 years, as well as an inflation-linked bond.

T-bills are a source of short-term financing in Danish kroner. Therefore, part of the funding of the announced temporary covid-19 measures will naturally be obtained in T-bills. The opening of two new T-bills in March means that the government now has a total of four issues that matures within the next 12 months. Depending on demand, the end-of-year outstanding amount in T-bills could be significantly higher than the earlier announced target of kr. 30 billion.

Foreign borrowing

Like the T-bill programme, the government’s two Commercial Paper programmes are a source of short-term financing and are therefore well-suited to offset temporary liquidity shifts. The programmes were activated at the end of March and will contribute significantly in meeting the government’s funding need over the coming months.

The government may also issue longer maturity bonds in foreign currency (European Medium Term Notes programme, EMTN). Foreign denominated bonds are normally issued to support the foreign exchange reserve, but can also be used to finance the government’s current deficit. So far, there has not been any EMTN issuance, but the programme is active, and the government can issue EMTNs within a short time.