The central government issues inflation-linked bonds, where the principal is linked to the Danish consumer price index (CPI). This gives investors the opportunity to invest in a safe asset, where the return follows the price index and thus secures their purchasing power. Inflation-linked bonds help ensure the central government a broad investor base and low financing costs. Background and further information on the central government's issuance of inflation-linked bonds can be found in the box.
The central government's inflation-linked bonds are regularly offered at auctions and in switch auctions between the on-the-run inflation-linked issue and the off-the-run inflation-linked issues. The strategy is for the central government to open a new inflation-linked bond every 4 years. The target for the total outstanding in the central government's inflation-linked bond programme is DKK 40-60 billion.
The characteristics of the inflation-linked bonds correspond to the European market standard and they are included in international indices for inflation-indexed government bonds. The base index for each bond can be found in the table below, and the daily index coefficients for the principal adjustment can be found on Nasdaq. The loan terms for the issues can be found here.
The central government's inflation-linked bonds
|Security type||Security name||Redemption date||ISIN||Basis index||Reference index date|
|On-the-run issues||0.10 per cent |
|DK0009924458||105.64000||15 November 2021|
|Off-the-run issues||0.10 per cent|
|DK0009923724||101.74667||15 November 2017|
Enquiries concerning the inflation-linked bond can be made to