Why Invest in TCorp Bonds?

TCorp bonds are an attractive opportunity for investors seeking a stable, income focused investment backed by the strength and stability of the state of New South Wales.

TCorp's 2019/20 Annual Funding Programme

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Strong Credit Ratings for New South Wales

 
Long Term Australian Currency Long Term Foreign Currency Short Term
Standard & Poor's AAA (neg) AAA (neg) A-1+
Moody's Aaa (stable) Aaa (stable) Prime-1

Ratings Agency Commentary

“The ratings reflect NSW's wealthy economy, excellent financial management, and exceptional liquidity, as well as our expectation that the state will deliver on its capital spending while maintaining after capital deficits and debt at manageable levels."

Standard & Poor's, September 2018

Credit Strengths:

"Well established institutional framework, which provides significant fiscal policy flexibility."

"Large and diverse economic base, which supports a broad and productive tax base."

Moody's, September 2018

“The State’s strong fiscal position reflects the Government’s ongoing commitment to deliver the investment that communities need while keeping debt sustainable and maintaining a triple-A credit rating.”

Quote from  NSW Budget 2019-20

Sound Budget Position

New South Wales has a diversified economy and a track record of keeping expense growth below revenue growth. The State has a strong history of infrastructure renewal through the recycling of assets.

The below chart shows New South Wales' strong budget result, with surpluses forecast across forward projections.

Liquidity

New South Wales’ bonds qualify as Level 1 High Quality Liquid Assets (the highest quality rating) as required under APRA’s liquidity rules for banking institutions.  In addition, New South Wales’ bonds are eligible collateral for repurchase agreements with the RBA. In secondary markets, liquidity in benchmark bond lines is supported by TCorp’s 14 panel members. Each panel member reports turnover on an annual basis.