16 Jun 2020

Government increases amount it plans to raise through bonds

6:48 pm on 16 June 2020

The government has increased the amount of money it plans to raise through bonds, as it sold a record amount, attracting strong bidding.

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File image. Photo: 123RF

The Debt Management Office says it now intends to borrow $29 billion for the year ended June, up $4bn on the programme in last month's budget.

Borrowing has been raised dramatically to pay for the various government funded programmes to cushion the impact of the Covid-19 pandemic.

Meanwhile, a record $7bn worth of bonds, maturing in 2024, were sold today through a one-off sale.

The offer attracted $14bn worth of bids pointing to strong overseas demand for the debt.

The sale was done through a syndicate of investment firms to make it easier to raise such a large amount of money.