Central government borrowing strategy 2nd half of 2023
The Danish economy has proven resilient in a time of high economic and geopolitical uncertainty, high inflation, and rising interest rates. Inflation has been decreasing in the first half of the year, and the economy continues to be characterized by high employment, low unemployment, and significant surpluses on the balance of payments and the central government finances.
The Governments funding need for 2023 was finally determined in April 2023 in context with the adoption of the deferred Finance Act. As expected, the delayed adoption of the Finance Act did not give rise to any changes to the announced strategy for the central government’s borrowing in 2023. The target for the central government’s issues is thus maintained at kr. 65 billion for government bonds and kr. 35 billion for the government’s short-term loan programmes.
Maintaining the current strategy
The targets for bond issuances and the short-term loan programmes are maintained at kr. 65 billion and kr. 35 billion, respectively in 2023.
Opening of 10-year green twin bond
In the 2nd half of the year, a new 10-year green government bond will be opened via syndication. The bond is a twin bond to the nominal 10-year government bond maturing in 2033 and is issued under the Green Bond Framework, which has been given the highest attainable dark green rating.
Issuance under the EMTN-programme
The government expects to issue a bond in foreign currency under the EMTN programme in the second half of 2023. It remains the strategy that the government annually will issue a bond in foreign currency.
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