Concise Consolidated Balance Sheet

As at 30 June 2007

 

2007
$m

2006
$m


Assets

 

 

Cash and liquid assets

286.6

193.3

Outstanding settlements receivable

402.6

444.6

Due from financial institutions

21.1

20.5

Securities held

3,847.2

2,327.5

Derivative financial instruments receivable

90.9

43.9

Loans to Government clients

27,703.8

26,660.1

Other assets

15.8

16.4

Plant and equipment

2.1

1.8

Total assets

32,370.1

29,708.1


Liabilities

 

 

Due to financial institutions

100.1

124.8

Outstanding settlements payable

531.5

294.5

Due to Government clients

409.4

949.9

Borrowings

30,275.0

27,700.5

Derivative financial instruments payable

967.0

573.2

Income tax equivalent payable

2.6

3.3

Other liabilities and provisions

41.4

18.8

Total liabilities

32,327.0

29,665.0

Net assets

43.1

43.1

Represented by:

 

 

Equity

 

 

Retained profits

43.1

43.1

Total equity

43.1

43.1


The accompanying discussion and analysis, and notes form part of these concise financial statements.

Discussion and Analysis of the Concise Consolidated Balance Sheet

The principal asset of loans to Government clients of $27,704 million represented over 85% of total assets. These comprised of loans to:

 

2007
$m

2006
$m

     

Crown Entity (NSW General Government)

10,484.6

10,196.5

Electricity entities

10,429.1

9,390.1

Transport entities

1,241.4

2,107.7

Water entities

3,931.4

3,459.2

Other entities

1,617.3

1,506.6

 

27,703.8

26,660.1


Securities, cash and liquid assets and amounts due from financial institutions are held for liquidity management purposes and in total, increased by $1,614 million to $4,155 million at 30 June 2007.  This reflects the need to progressively increase liquidity in advance of the maturity of the March 2008 benchmark borrowing series.

Borrowings, the principal liability, comprised:

 

2007
$m

2006
$m

     

Domestic Benchmark Bonds

12,419.2

12,000.3

Global Exchangeable Bonds

14,431.2

11,047.7

 

26,850.4

23,048.0

Euro medium term notes

3,003.9

4,145.5

Other borrowings

420.7

507.0

 

30,275.0

27,700.5


The volume of borrowings is a function of the requirement on TCorp to fund loans to New South Wales public sector clients. The Benchmark Bond program continues to be a cornerstone of TCorp’s funding strategy. 

During the year, TCorp completed a net borrowing program of $2.9 billion. Face value of net outstandings of Benchmark Bonds increased by $4.6 billion. Continued strong demand from offshore investors enabled outstanding Global Exchangeable Bonds to be increased by $3.4 billion. Domestic Benchmarks Bonds were increased by $0.8 billion. Strong demand for Benchmark Bonds enabled funding to be raised in addition to net client loan drawdowns, the balance being applied to liquidity asset holdings.

The volumes on issue of both Domestic Benchmark and Global Exchangeable Bonds are:


Maturity

 


Coupon

2007
Face Value
$m

2007
Market Value
$m

2006
Face Value
$m

2006
Market Value
$m

           

1 March 2008

8.0%

5,867.7

6,082.6

6,408.8

6,778.2

1 October 2009

6.0%

1,355.0

1,355.6

-

-

1 December 2010

7.0%

5,300.0

5,372.1

5,191.9

5,416.5

1 May 2012

6.0%

5,196.4

5,088.4

4,879.8

4,921.3

1 August 2014

5.5%

4,922.8

4,706.4

4,446.3

4,392.1

1 March 2017

5.5%

4,534.1

4,245.3

1,582.5

1,539.9

 

 

27,176.0

26,850.4

22,509.3

23,048.0