Funding Strategy

TCorp’s funding strategy is based on a number of key principles, summarised as follows:

• TCorp seeks to achieve the lowest possible cost of funds for on-lending to its public sector clients over time.
  
• The cornerstone of TCorp's funding strategy is the benchmark bond programme. By maintaining a series of liquid benchmark bond maturities a transparent yield curve for TCorp debt can be readily observed by both investors in TCorp bonds, and TCorp's public sector clients. Benchmark bonds on issue will generally account for between 60% to 80% of TCorp debt outstanding.
  
• TCorp aims to enhance and maximise the liquidity of its benchmark bonds through a number of measures, including day-to-day interaction with the dealer panel.
  
• TCorp seeks to diversify its funding base through a combination of domestic and offshore borrowing programmes. As opportunities for cost-effective funding from offshore sources will vary with market dynamics, TCorp's mix of onshore/offshore funding will also fluctuate.