Treasury Corporation of Victoria
One-one-one interviews with WATC, TCV, SAFA, QTC and TCorp.
The state of Victoria is at the forefront of the general uptick in Australian semi-government issuance, as it exits a phase of state asset transactions and enters one of major infrastructure investment. The state’s treasurer and its funding agency, Treasury Corporation of Victoria (TCV), talk to KangaNews about the purpose of the new-debt requirement and how it will be funded.
Australia’s May-June budget season marked a change in direction for sovereign and semi-government bond issuance in the years ahead. While the aggregate funding task for the states is about to grow once more, the Commonwealth government finally produced a budget with a lower year-on-year issuance requirement – assisted by a cash grab from the local banking sector.
In March, KangaNews hosted its third annual Socially Responsible Investment Seminar in Sydney – at a time in which environmental, social and governance (ESG) principles are planting deep roots in the local investor base and being met by a greater flow of targeted product. Together with its headline sponsor, TD Securities, KangaNews presents a flavour of Australia’s thought leadership in the socially responsible debt space.
Treasury Corporation of Victoria (TCV) has disclosed an expected funding task of A$8.3 billion (US$6.3 billion) for 2017/18, significantly up on recent years as the state government continues to focus on infrastructure investment even after the asset-sales cycle has largely played out. Analyst response to the Victoria state budget, delivered on 2 May, is broadly positive despite the increased deficit though TCV spreads widened on budget day.
While global geopolitical risk dominates headlines, Australian debt capital markets have in 2017 arguably had their most promising start in several years. Conversations at the KangaNews DCM Summit took in all the key market themes and the bigger picture affecting industry participants now and in the future.