Western Australian Treasury Corporation
About Western Australian Treasury Corporation
Western Australian Treasury Corporation (WATC) is the central financial-services provider for the state of Western Australia (WA). WATC works with the state government and its public-sector clients to help achieve sound financial-risk management consistent with the government’s goal of financial and economic responsibility.
WATC’s principal activities involve funding and debt management, asset and investment management, financial-advisory services, financial-risk management, and treasury-management services and systems.
WATC is fully owned by the WA government. It is a statutory authority established as the state’s central borrowing authority under the Western Australian Treasury Corporation Act 1986 (WATC act). In 1998, WATC’s role expanded to include provision of financial-management services to WA’s public sector.
The treasurer, on behalf of the state, guarantees any financial liabilities WATC incurs or assumes. Any financial liability of the treasurer under the guarantee shall be charged to, and paid out of, the consolidated account of the state, which is appropriated to the necessary extent under section 13(2) of the WATC act.
All WATC activities are subject to a comprehensive risk-management policy that governs the handling of market, credit, liquidity, foreign-exchange, operational and reputational risks. WATC identifies and manages all material risks in line with its objectives and board-approved policies.
To meet WA’s public-sector borrowing requirements, WATC maintains access to a range of domestic and offshore funding markets, issuing in fixed- and floating-rate formats. The agency undertakes the bulk of its funding through its domestic fixed-rate benchmark-bond programme. It also issues FRNs – to provide longer-term, floating-rate funding for clients – and domestic short-term notes.
|CREDIT RATINGS (S&P/M/F)
LONG-TERM FOREIGN CURRENCY
|FOREIGN-CURRENCY PROGRAMMES||MULTICURRENCY EMTN
SINCE JAN 2020
|A$1.9BN EQUIVALENT (ECP)|
|TERM FUNDING REQUIREMENT
| FY21 FY20 FY19
4.3 (f/c) 11 5.8
|RBA REPO ELIGIBLE||YES|
|RBNZ REPO ELIGIBLE||NO|
At 31 December 2020, WATC had A$39 billion of fixed-rate benchmark bonds on issue, in 12 lines. At the same date, WATC had A$10.9 billion in FRNs on issue in six lines as well as A$1.9 billion in domestic short-term notes.
WATC taps overseas markets opportunistically through its bond issues and its range of continuous note-issuance facilities. At 31 December 2020, WATC had A$1.9 billion outstanding under its ECP programme and zero outstanding in its EMTN programme. All foreign-currency borrowings are swapped back into Australian dollars.
The treasurer guarantees all WATC debt on behalf of the state. The Australian Prudential Regulation Authority recognises WATC bonds as 0% risk-weighted, level-one high-quality liquid assets. They are repo eligible with the Reserve Bank of Australia.
WATC undertakes its debt issuance by reverse enquiry, tender and syndication through its 12-member fixed-income dealer panel. Issuance of all benchmark bonds, FRNs and short-term notes meets the requirements for exemption from Australian interest-withholding tax.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vince Cinquina, Head of Financial Markets
+61 8 9235 9120
John Zuvich, Chief Dealer, Debt Markets and Liquidity
+61 8 9235 9143