Issuance strategy

Domestic borrowing

The target for sales of government bonds is kr. 65 billion at market value via auctions and tap sales. Issuance will be evenly distributed over the year, and the target is average sales of around kr. 2.5 billion per auction. The remainder of the borrowing requirement will be covered via T-bills, commercial papers (CP) and by drawing on the central government’s account. According to the December Economic Survey, the central government’s financing requirement in 2022 is expected to be kr. 146 billion.

In 2022, the list of on-the-run issues is expanded with a green 10-year nominal government bond. In addition, a new inflation-linked bond will be opened during 2nd half of 2022.

Financing requirement 2022

Financing requirementbillion
Net financing requirement-47
Social housing24
Redemption of bonds, etc.
​Redemption of T-bills and CP
Financing requirement146
Note: Redemption of bonds, etc. includes redemptions and buy-backs of government bonds in both domestic and foreign currency, payments from the central government in currency swaps and net purchases of government funds.     

Issuance will continue to be concentrated in the 2-year and 10-year nominal bonds. The opening of the green bond and the new inflation-linked bond broadens the list of on-the-run issues and will ensure a diversified investor base. 

The central government may also issue in the 30- year nominal bond in 2022, see table 2. The 5-year maturity segment will no longer be included in the list of on-the-run issues to focus the issuance on the remaining on-the-run issues. 

In 2022, two on-the-run issues will by default be offered at all ordinary auctions. There will still be an opportunity to supplement with a third issue, if deemed fit. 

The target is an outstanding amount of kr. 35 billion in the central government’s short-term loan programmes by year-end 2022. The issuances will primarily be in T-bills supplemented by commercial papers.

The T-bill programme is adjusted such that a new 6-month T-bill will be opened every third month. The first new 6-month T-bill will be opened at the auction with value date on 1 September 2022. Going forward, the programme will consist of two issues as opposed to the current four 12-month issues. Two monthly T-bill auctions will be held in 2022. 

The commercial paper programmes are kept active, but are expected to account for a smaller share of total short-term borrowing.

The strategy is that the central government will issue bonds in foreign currency under the EMTN programme during 2022. The issuance will ensure that the central government maintains strong and diversified market access in foreign currency funding.  

By continuously issuing in the foreign loan programmes, they are maintained as an active part of the central government’s and Danmarks Nationalbank’s liquidity reserve.