Main Site Navigation
|
NSW Treasury Corporation Annual Borrowing ProgrammeNSW Treasury Corporation Annual Borrowing Programme
Release date:16 Jun 2009
NSW Treasury Corporation’s (TCorp) funding requirement for 2009/10 is forecast at $10.4bn, reflecting the new funding requirements of $9.9bn for public sector clients, and $5.5bn to meet the refinancing of maturing liabilities. Term maturities to be refinanced in 2009/10 are modest at $3.0bn, predominantly reflecting the October 2009 Benchmark maturity. Favourable funding market opportunities have enabled TCorp to prefund $5.0bn of the forecast 2009/10 funding requirement in the current year.
TCorp’s funding strategy over 2009/10 will continue to centre on maintaining large, liquid lines of Benchmark Bonds. Following the successful launch of the May 2013 Benchmark via syndication, the Benchmark Bond strategy will comprise a combination of syndications (when establishing new maturities or for large client requirements), tenders, and tap issuance to the dealer panel. Regular issuance of Capital Indexed Bonds will continue to be undertaken, with regular fixed tenders to be held on the same date each quarter, commencing 20 August 2009. Further details of targeted issuance volumes for the CPI Bond Programme will be made available over July. Where offshore markets can be accessed to source funding at attractive levels, these opportunities will be used to diversify TCorp’s funding base. TCorp utilised its Domestic Promissory Note Programme over 2008/09, and this will continue to be used to assist in smoothing the core funding requirement of clients over 2009/10.
Over the 2008/09 financial year, TCorp’s required funding task has been met by increased issuance of Benchmark Bonds, reflecting strong investor demand from both domestic and offshore investors. This demand enabled TCorp in May 2009 to issue $2.6bn of a new May 2013 Benchmark. Total Benchmark bonds outstanding as at 31 May 2009 were $36.1bn, a $7.0bn increase over the financial year. In addition, Domestic Promissory Note outstandings are currently forecast to be $2.5bn at June 30 2009; however, average utilisation is expected to reduce over 2009/10. TCorp has also had a very successful year in sourcing longer term offshore funds, with over $1.0bn raised. In February 2009, TCorp issued a £250m 30 year bond which was its inaugural Sterling Bond issue.
[1]Forecast surplus liquidity held in advance of client funding requirements as at 31 May 2009 was $5.0bn. These surplus funds will be applied to meet client requirements over FY10.
For further information please contact Michael Allen, General Manager Treasury, on: (02) 9325-9288.
|
Utility Navigation |