Western Australian Treasury Corporation
Western Australia (WA)’s economy is continuing an upward trajectory, with increased mining revenues and a favourable reallocation of goods and services tax (GST) among the main drivers of fiscal improvement. The state is now forecasting a fiscal surplus in 2019/20, one year earlier than expected.
On 29 May, Western Australian Treasury Corporation (WATC) revealed an estimated term funding requirement for the 2020/21 financial year of A$2.6-4.5 billion (US$1.7-3 billion). The announcement followed the state treasurer’s economic update to the Western Australian parliament on 28 May.
Western Australian Treasury Corporation (WATC) says issuing a new 2031 line was always part of its long-term funding strategy even before semi-government borrowers faced a substantially higher funding need in response to the COVID-19 crisis.
On 18 May, Western Australian Treasury Corporation (WATC) (AA+/Aa1) launched a new October 2031, Australian dollar denominated, syndicated, benchmark transaction. The forthcoming deal is being marketed at 76-80 basis points area over 10-year futures contract, equivalent to 68.2-72.2 basis points area over Australian Commonwealth government bond.
On 15 May, Western Australian Treasury Corporation (AA+/Aa1) mandated Bank of America Securities, Commonwealth Bank of Australia, National Australia Bank and UBS for a new October 2031 benchmark bond transaction.
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