#1thhhht +tasta stast +4 TTT If (TM) NEW ZEALAND DEBT MANAGEMENT TE TAI ŌHANGA THE TREASURY New Zealand Government debt market outlook you would like to view a recording of this presentation, please click here JANUARY 2024 Te Kāwanatanga o Aotearoa New Zealand Government#2Overview In this presentation: Borrowing Programme and Fiscal Outlook New Zealand Government Securities Portfolio New Zealand Sovereign Green Bond Allocation Report 2023 Allocation as of 30 June 2023 Green Bond Allocation Report#3Borrowing programme and fiscal outlook TTTTT 44 TLT tastastastas TT TT الے حالی TT ttttt TT iiii#40 NZ $billions 50 45 2023/24 annual NZGB programme increased to NZ$38 billion 40 35 30 25 20 15 10 LO 5 Year ending 30 June Historical Actual Issuance PREFU - September 2023 IHYEFU - December 2023 Source: NZDM, The Treasury 2023 2024 2025 2026 250 Forecast 200 -Total Outstandings (RHS) 0 50 150 100#5Forecasts Year ending 30 June (face value) 2024 2025 2026 2027 2028 Total Gross NZGB issuance (NZ$ billion) 38.0 36.0 34.0 28.0 16.0 152.0 NZGB maturities and repurchases (NZ$ billion) 18.8 19.9 18.1 22.6 15.5 94.8 Net NZGB issuance (NZ$ billion) 19.2 16.2 15.9 5.4 0.5 57.2 NZGBS outstanding (NZ$ billion) 171.6 187.8 203.7 203.7 209.1 209.6 n/a NZGBS outstanding (% GDP) 41% 43% 44% 43% 41% n/a Forecast short-term borrowings (NZ$ billion) 9 9 9 9 9 n/a Change in NZGB issuance (relative to PREFU) 2 1 4 0 n/a 7 Change in short-term borrowings (relative to PREFU) 0 0 0 0 n/a n/a Source: NZDM, The Treasury#6Operating balance* returns to surplus in 2026/27 NZ $billions 15 10 Forecast 5 0 -5 -10 -15 -20 -25 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Year ending 30 June HYEFU - December 2023 PREFU - September 2023 Source: The Treasury *Operating balance before gains and losses#7Net debt peaks in the near term before falling NZ $billions 140 120 100 80 60 40 20 1 Forecast % of GDP 35 30 25 20 15 10 5 сл 0 0 2014 2015 2016 2017 2018 2019 2020 2021 Year ending 30 June 2022 2023 2024 2025 2026 2027 2028 Net Debt -% of Nominal GDP (RHS) Source: The Treasury, Half Year Economic and Fiscal Update 2023#8TT tastastastas TTTTT TLT 44 TT TT الے حالی TT stastisk st New Zealand Government securities portfolio#9Two new nominal bond lines and one tap syndication NZ $billions 18 16 14 12 10 8 NZGB Portfolio 4 2 0 May Apr May Apr May 24 25 26 27 28 Apr 29 May May May Apr May May Apr May May May 30 31 32 33 34 35 37 41 51 54 Sep Sep Sep Sep 25 30 35 40 Inflation-Indexed Bonds Nominal Bonds Conventional Green Available Capacity Source: NZDM, as of 15 January 2024#10Recent history of syndications NZ $billion 25 20 15 27 31 28 10 41 51 33 LO 5 32 34 24 25 26 30 35 33 37 40 29 31 0 2015 2016 2017 2018 2019 Calendar Year 2020 2021 2022 2023 Green Syndication IIB Tap ■IIB Syndication Nominal Tap Nominal Syndication Source: NZDM#11IIB issuance is expected to be less than NZ$1 billion in 2023/24 30% 25% 20% 15% 10% 5% 0% 2013 2014 2015 Source: NZDM, 15 January 2024 ཨ་ལ་ NZ $billions 6 LO 5 4 3 2 2016 2017 2018 2019 2020 2021 2022 2023 2024 IIIB Issuance (Fiscal Year) (RHS) -IIB Proportion of NZGB 1 Amount issued as of 15 January 2024#12Proportion of short-term borrowings consistent with history Short-term Borrowings NZ $billions 14 12 10 8 6 4 2 0 % 14 Forecast 12 10 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Year ending 30 June Short-term borrowings T-Bills on issue ECP outstanding -Short-term borrowings as % of total NZGS on issue (RHS) Source: NZDM, as of 15 January 2024 6 4 ∞0 0 2 8 0 5% 3% NZGS PORTFOLIO 15 January 2024 81% Euro Commercial Paper Inflation Indexed Bonds 11% T-bill Nominal Bonds#130 N 4 3 5 сл 7 6 Good coverage ratio for nominal bond tender bps 20-Oct-2023 26-Oct-2023 07-Dec-2023 05-Oct-2023 16-Nov-2023 23-Nov-2023 12-Oct-2023 02-Nov-2023 09-Nov-2023 30-Nov-2023 14-Dec-2023 07-Dec-2023 12-Oct-2023 09-Nov-2023 16-Nov-2023 30-Nov-2023 05-Oct-2023 Source: NZDM, Q4 2023 26-Oct-2023 2026 2027 2028 2029 2030 2031 Tender Cover Ratio (LHS) 2032 2033 2034 Successful Yield Range - Basis Points (RHS) 23-Nov-2023 14-Dec-2023 20-Oct-2023 02-Nov-2023 09-Nov-2023 23-Nov-2023 07-Dec-2023 05-Oct-2023 20-Oct-2023 12-Oct-2023 26-Oct-2023 02-Nov-2023 16-Nov-2023 30-Nov-2023 14-Dec-2023 2037 2041 2051 0 1 N 3 4 LO 7 6#14NZGB yields maintain positive spread to peers 6 % LO 5 4 + 3 2 - 0 Jan 13 Jan 14 Jan 15 Source: Bloomberg, as of 15 January 2024 Jan 16 Jan 17 Jan 18 Jan 19 Late October 2023... ты Jan 20 Jan 21 Jan 22 Jan 23 Jan 24 —10-year yield: NZGB (rated AA+ (foreign currency) by S&P) -10-year yield: Average of sovereigns rated AA (foreign currency) and higher by S&P#15NEW ZEALAND DEBT MANAGEMENT L مال TTT TT L ר New Zealand Sovereign Green Bond Allocation Report 2023 Allocation as of 30 June 2023 T TTT #tastystasta TT TT الے ملے جلے ے لے لے لے لے Green Bond update XX ולת. ד ד ד ד ד TT C TE TAI OHANGA THE TREASURY#16Green Bond overview 2022/23 Green Bond Allocation Net proceeds: $4,161 million New Zealand Sovereign Green Bond New Zealand Sovereign Green Bond Framework developed in 2022 • First issuance November 2022 $3 billion 78% Allocated - $3,244m Unallocated proceeds will be allocated in 2023/24. 22% Unallocated $917m • First NZ Sovereign Green Bond Allocation Report - published December 2023 – available on the NZDM website#17Green Bond allocation 1% Allocation by category FY 2022/2023 1% 24% Clean Transport Climate Change Adaptation 354 प्रदत्त PK ODDE зас ODDI New Zealand Sovereign Green Bond Eligible expenditure pool to FY 2025/2026 19% Energy Efficiency and Renewable Energy 5% Green Buildings 1% $10.7 billion $3.2 billion 47% 2% Living and Natural Resources and Land Use 12% Pollution Prevention and Control 12% Sustainable Water and Wastewater Management 2% 8% 4% Terrestrial and Aquatic Biodiversity 12% 14% 35%#18Impact reporting The next Green Bond Annual Report (end of 2024) - will also include impact reporting. FQ ODDI зас зас ODDI New Zealand Sovereign Green Bond Impact framework International best - practice – using The International Capital Market Association's Handbook - Harmonised Framework for Impact Reporting Impacts Environmental improvements Emissions reductions Biodiversity gains Social co-benefits Metrics and indicators • Measured outputs and outcomes Project analysis Case studies Aggregation across projects and categories#19Contact details The Remarkables Photo credit: Hamish Dick _ Kim Martin - Director, New Zealand Debt Management Mela Greenslade - Head of Green Bonds, New Zealand Debt Management [email protected] 19#20TM) Disclaimer NEW ZEALAND DEBT MANAGEMENT This presentation has been prepared by the Treasury on behalf of the New Zealand Government and is for general information purposes only. By listening to the presentation, or reading the presentation materials, you acknowledge and agree to the contents of this disclaimer. To the maximum extent permitted by law, neither the Treasury nor the New Zealand Government makes any representation, recommendation or warranty, express or implied, as to the accuracy, completeness or currency of any of the information in this presentation and accept no responsibility or liability therefore. Data are indicative and approximate only, and all information is subject to change. This presentation is intended as a snapshot view of New Zealand only, and the Treasury and the New Zealand Government have no obligation, and do not undertake or accept any responsibility or obligation, to update, expand or correct anything in this presentation or inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation. 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