Institutional Investors

Funding Sources

At Western Australian Treasury Corporation, our funding sources include both domestic and offshore facilities.

Benchmark Bond Program

Our long-term borrowing requirements are primarily sourced through our Benchmark Bond program. This is accomplished by establishing and maintaining a select number of large liquid lines of inscribed stock which are added to over time and traded actively in secondary markets. Benchmark bonds are an attractive value proposition for investors because of:

  • Strong credit ratings AAA/Stable and Aaa/Positive
  • Good liquidity with large volumes on issue, Tier 1 Assets, repo-eligible to the Reserve Bank of Australia
  • Withholding tax exempt
  • Yield pickup over equivalent Commonwealth Government Bonds.

Currently, Western Australian Treasury Corporation (WATC) has the following lines of Benchmark Bonds on issue at 31 May 2024:

Coupon                 

Maturity

Amount on Issue

2.50%

23/07/2024

A$3,448.375 million

5.00%

23/07/2025

A$5,293.752 million

3.00%

21/10/2026

A$5,170.100 million

3.00%

21/10/2027

A$4,203.920 million

3.25%

20/07/2028

A$4,118.360 million

2.75%

24/07/2029

A$4,731.185 million

1.50%

22/10/2030

A$3,169.300 million

1.75%

22/10/2031

A$3,330.400 million

4.50%

21/07/2032

A$1,350.000 million

4.25% (Green Bond)

20/07/2033

A$2,020.000 million

2.00%

24/10/2034

A$1,684.240 million

2.25%

23/07/2041

A$  728.065 million

Total

 

A$39,247.697 million

WATC has a dealer panel comprising leading financial institutions through which it issues its benchmark bonds and floating rate notes and conducts secondary market making activities in the domestic market.


Floating Rate Note Program

WATC also issues inscribed stock in a Floating Rate Note (FRN) format to accommodate the floating rate borrowing requirements of its clients. Currently WATC has the following FRN lines on issue at 31 May 2024:

Coupon                 

Maturity

Amount on Issue

+25.50

19/02/2025

A$1,693.000 million

+11.00

10/03/2026

A$1,775.000 million

+2.00

23/02/2027

A$1,000.000 million

+8.00

08/03/2028

A$1,000.000 million

+9.5

21/02/2029

A$1,100.000 million

+15.5

21/02/2031

A$1,000.000 million

Total

 

A$7,568.000 million


Domestic Short-Term Note Program

Domestically, short-term funds are raised through the issue of short-term notes in the form of inscribed stock. At 30 June 2023, $2,689 million was outstanding in short-term notes. Issuance of WATC’s short-term notes is undertaken on a tap basis, primarily with domestic banks. Short-term notes are typically issued for terms not greater than one year.

WATC’s domestic short-term notes are issued in a manner which satisfies the requirements for exemption from interest withholding tax.

The top three investors in short-term notes for the period 1 March 2023 to 31 May 2023 were:

  1. National Australia Bank
  2. ANZ
  3. Westpac Banking Corporation

Euro Medium Term Note Program

Since the establishment of WATC’s US$2 billion Euro Medium Term Note (EMTN) program in 1990, 35 issues have been made in Australian dollars and other currencies. Issues under this program can be made for terms from one month to 30 years, either through the dealer panel or on a reverse inquiry basis. Issuance through this program is currently subject to a documentation update process.

WATC’s issues under its EMTN program satisfy the requirements for exemption from interest withholding tax.

UBS AG, London Branch, is the Arranger of WATC’s EMTN Program.

Citibank, N.A., London Branch is the Fiscal Agent, Principal Paying Agent, Principal Calculation Agent, Registrar and Transfer Agent for the program.

Outstanding EMTN Issues
There is currently nil outstanding for this program.


Euro Commercial Paper Program

WATC maintains a multicurrency Euro Commercial Paper (ECP) program. WATC issues ECP in a number of currencies including US dollars, Australian dollars, British pounds sterling, euro, Hong Kong dollars, Japanese yen, New Zealand dollars, Singapore dollars and Swiss francs. The current limit on the program is USD6 billion.

Issues under this program can be made for terms from seven to 364 days through the dealer panel.

WATC issues its ECP in a manner which satisfies the requirements for exemption from interest withholding tax.

At 30 June 2023, there was nil outstanding in ECP.

Citigroup Global Markets is the Issuing and Paying Agent for the program.

Banner images:
Top 
- The Bell Tower, Perth. Image courtesy of Tourism Western Australia.
B
elow - Perth City from above. Image courtesy of City of Perth.