Queensland Treasury Corporation
About Queensland Treasury Corporation
As the Queensland government’s central financing authority, Queensland Treasury Corporation (QTC) plays a pivotal role in securing the state’s financial success. With a focus on whole-of-state outcomes, QTC provides a range of financial services to the state and its public-sector entities, including local governments. These services include debt funding and management, cash-management facilities and financial risk-management advisory services.
QTC is 100% owned by the Queensland government. It was established in 1988 and is a corporation sole, constituted by the under treasurer of the state of Queensland in accordance with the Queensland Treasury Corporation Act 1988.
The treasurer of Queensland, on behalf of the state government, guarantees QTC’s obligations under all debt securities QTC issues, as well as all payment obligations to counterparties under derivative transactions governed by ISDA agreements.
Governance and risk
All financial risks – including cost-effective and sustainable funding, interest-rate, foreign-exchange and counterparty risk – are strictly managed within QTC’s board-approved risk-appetite parameters. To minimise funding and refinancing risk, QTC manages its funding task using diversified global facilities and actively borrows along the yield curve.
QTC aims to access funding across a diversified investor base, with a range of short- and long-term funding facilities in a variety of markets and currencies. Facilities include Australian dollar denominated bonds from benchmark and nonbenchmark programmes, multicurrency EMTN and US MTN deals, domestic treasury notes, and ECP and US CP programmes. QTC’s benchmark Australian dollar bond programme has 144A capability allowing issuance of new bond lines directly into the US to “qualified institutional buyers” pursuant to the Rule 144A exemption.
|CREDIT RATINGS (S&P/M/F)
LONG-TERM FOREIGN CURRENCY
|FOREIGN-CURRENCY PROGRAMMES||SHORT-TERM: ECP, US CP
LONG-TERM: EMTN, USD MTN
SINCE JAN 2020 (AT 31 JAN 2021)
CP: £180M, US$950M, US$3.8BN
|TERM FUNDING REQUIREMENT
| FY21 FY20 FY19
21 13.4 8
|RBA REPO ELIGIBLE||YES|
|RBNZ REPO ELIGIBLE||NO|
QTC’s Australian dollar benchmark bonds will remain the principle source of funding with 14 established lines ranging from 2021-34 maturities. Complementary to this, QTC will consider issuance of other term-debt instruments such as green bonds, bond maturities out to 30 years, floating-rate notes and foreign-currency denominated bonds. In financial year 2020/21, QTC has issued multiple new lines including a 2031 green bond, 2032 benchmark bond and 2050 nonbenchmark bond.
QTC will continue a programmatic approach to issuance, including syndication, reverse enquiry and frequent tenders.
Key bond attributes
QTC bonds are eligible for outright holding by the Reserve Bank of Australia (RBA) and are eligible collateral for repurchase agreements with the RBA. They are 0% risk weighted for the Australian Prudential Regulation Authority’s bank capital-adequacy requirements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Deputy Chief Executive and Managing Director,
Funding and Markets
Head of Funding and Liquidity,
Funding and Markets
+61 7 3842 4781
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