Treasury Corporation of Victoria
About Treasury Corporation of Victoria
Treasury Corporation of Victoria (TCV) is the central financing authority for the state of Victoria, established by an act of the Victorian parliament. TCV provides tailored loans and deposits, and advisory and investment services to the state and state-related entities. It is also responsible for maintaining access to liquidity.
The Treasury Corporation of Victoria Act 1992 (TCV act) established TCV, which commenced operation on 1 January 1993. TCV is 100% owned by the government of Victoria.
The government of Victoria guarantees TCV’s payment obligations in relation to its borrowings and derivatives transactions, as detailed in the TCV act. The state government also guarantees TCV’s loans to its participating authorities.
TCV commenced operations with capital of A$30 million. At 30 June 2020, retained capital and earnings was A$213 million.
TCV’s operations expose it to financial and operational risks. Management of these risks is a core element of its organisational objectives. The main objective is to provide robust and consistent risk management, performance measurement and capital management that are commensurate with TCV’s business mandate, corporate objectives, business plan and risk appetite.
TCV maintains four key issuance programmes. The domestic benchmark-bond programme is the cornerstone of its funding strategy. TCV supplements this with a US$3 billion EMTN programme, a A$5 billion ECP programme and a A$10 billion domestic promissory-note programme.
|CREDIT RATINGS (S&P/M)
LONG-TERM FOREIGN CURRENCY
|FOREIGN-CURRENCY PROGRAMMES||EMTN, ECP|
SINCE JAN 2020
|TERM FUNDING REQUIREMENT
| FY21 FY20 FY19
26.7 45.8 8.6
|RBA REPO ELIGIBLE||YES|
|RBNZ REPO ELIGIBLE||NO|
In 2020/21 TCV will continue to focus on building liquid benchmark-bond lines, growing its recently created long-dated nonbenchmark lines and maximising the diversity of its investor base.
The main source for the 2020/21 long-term funding requirement is expected to be the domestic benchmark-bond programme. TCV will be an active issuer via public tenders and syndications, and reverse enquiry or tap issuance will continue to be an important and significant part of overall funding activity.
Given the increased size of its funding requirement, TCV intends to hold a minimum of two tenders per month via Yieldbroker DEBTS.
Short-term borrowing will continue to be undertaken through the Australian dollar domestic promissory-note programme and the ECP programme. Relative pricing and demand in each of these markets will determine the mix of issuance.
TCV has no plans to issue inflation-linked debt or foreign-currency maturities.
FOR FURTHER INFORMATION PLEASE CONTACT:
+61 3 9651 4824
Head of Markets
+61 3 9911 3636
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