Slight dip in outstanding debt instruments
The total amount of outstanding debt instruments issued by Dutch institutions fell in the first quarter of 2016, as a EUR 15 billion increase in money market paper was more than offset by a EUR 31 billion decrease in capital market paper. The resulting amount of outstanding money market paper was EUR 117 billion at the end of the first quarter of 2016, and capital market paper outstanding came to EUR 1,717 billion. Over the same period, the market value of listed shares issued by Dutch institutions climbed.
Outstanding money market paper up
In the first quarter of 2016, Dutch institutions issued new money market paper to the value of EUR 69 billion, almost EUR 12 billion up from the fourth quarter of 2015. Whereas euro-denominated money market paper issues were down, those in foreign currencies were sharply higher. At EUR 32 billion, gross non-euro money market paper issues returned to the average level seen over the past years after having plummeted in the preceding quarter. The banks were fully responsible for the turnaround, issuing to the tune of EUR 28 billion, almost double the volume issued in last year's final quarter.
The total volume of outstanding Dutch money market paper grew by around EUR 15 billion in the first quarter of 2016, reaching nearly EUR 117 billion. Despite the increase, this is at the lower end of the average range seen in the past two and a half years (see Chart 1), which has hovered around EUR 125 billion since year-end 2013. Dutch institutions used to have significantly more issues outstanding between 2011 and 2013, at some EUR 160 billion.
Outstanding capital market paper down
In the first quarter of 2016, Dutch institutions issued new capital market paper to the value of EUR 55 billion, EUR 8 billion up from the previous quarter. This time, only gross issues by special purpose vehicles and banks increased. The first quarter of a year typically shows a rather sharp increase, with other institutions also issuing larger volumes. Over the past years, average gross capital market paper issues in the first quarter were over EUR 30 billion higher than those in the final quarter. However, non-financial corporations did not issue any capital market paper at all in the first quarter of this year. In addition, whereas the government used to raise an average EUR 20 billion each first quarter in previous years, it limited its gross issues to EUR 7 billion, which was even EUR 1 billion below the amount raised in the final quarter of 2015.
The total volume of outstanding Dutch capital market paper dropped by around EUR 31 billion in the first quarter of 2016, to reach EUR 1,717 billion. Roughly one quarter was non-euro-denominated, and its value decreased as the euro appreciated. Furthermore, a large volume of euro-denominated capital market paper expired in the first quarter. Overall, the current level of capital market paper outstanding is slightly below that seen on average since 2015 (see Chart 2). However, the issuing activity of special financial institutions – which are not or not closely related to the Netherlands – largely accounts for fluctuations in issued debt levels. If the debt instruments these institutions issue are disregarded, the total volume of capital market paper outstanding has remained fairly stable for some time, at just below EUR 1,250 billion.
Increase in market value
At the end of the first quarter of 2016, total market value of the listed shares issued by Dutch entities stood at EUR 802 billion, almost EUR 32 billion up from the preceding quarter. A notable event this quarter was Shell's acquisition of British Gas. Shell paid for part of the takeover in newly issued shares, which, at the time of the transaction, were worth over EUR 30 billion. However, this amount was not recorded as a share issue, given that the definition used in this type of statistics only considers share issues against cash. Based on that definition, there were virtually no share issues in the first quarter of 2016, at EUR 43 million.