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Northern Territory taps 2013s for A$106 million |
Northern Territory Treasury Corporation (Aa1) (NTTC) increased its 2013 bond by A$106 million (US$73.73 million) on October 8 in a UBS Investment Bank (UBS)-led deal, as the issuer seeks, like the other Australian states, to finance significant infrastructure projects.
The latest transaction, which increases the size of NTTC’s 2013 line to A$226, priced at 12 basis points above the benchmark Queensland Treasury Corporation (QTC) 6 per cent August 2013 line. Although UBS did not disclose a price to swap the QTC bond is understood to have been marked at around 27 basis points below swap at the close on NTTC’s pricing date.
According to Alex Pollon, manager, financial assets and liabilities at Northern NTTC in Darwin, the transaction was placed exclusively with domestic funds.
In terms of ongoing funding requirements, Pollon says that although NTTC is a much smaller player than the main semi-government borrowers in Australia – having around A$2 billion in outstanding term debt and an annual refinancing requirement of A$350-400 million – its funding goals follow a similar pattern to other states. “The territory has a number of major infrastructure projects underway, which gives us a long term borrowing focus,” he explains.
As a result, he says NTTC is open to longer-dated borrowing when demand allows; although the majority of the territory’s debt is set to mature by 2013 it has exposures up to 2030 through private placements.
The issuer has a total of A$1.44 billion outstanding in five term deals, with one maturity in each year from 2009 to 2013. The largest line is the A$325 million 2011.
| Issuer |
Northern
Territory Treasury Corporation |
| Rating
(Moody's) |
Aa1 |
| Sector |
Semi-government |
| Country |
Australia |
| Pricing date |
8 October 2008 |
| Settlement
date |
15 October 2008 |
| Issue Amount |
A$106 million |
| Total issue
amount |
A$226 million |
| Format |
Fixed rate senior notes
increase |
| Coupon |
6.75% |
| Yield |
5.41% |
| Spreads |
12 bp/ QTC 14 Aug 2013 |
| Maturity date |
15 October 2013 |
| Lead Manager |
UBS Investment Bank |
| Other deals
outstanding |
Maturity |
Volume (A$M) |
| |
Jul 09 |
279.2 |
| |
Sep 10 |
305 |
| |
Nov 11 |
325 |
| |
Sep 12 |
300 |
|
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Last Updated ( Thursday, 09 October 2008 )
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