Benchmark Bond Program
WATC’s long-term borrowing requirements are primarily sourced through its 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 attractive to domestic and offshore investors because of:
- the yields offered over their equivalent Commonwealth Government bonds
- the liquidity of the issues
- their exemption from interest withholding tax
- the strength of the State’s AA+/Aa1 rated guarantee.
WATC has a dealer panel comprising leading financial institutions through which it places its benchmark bonds and conducts secondary market making activities in the domestic market.
Currently, WATC has the following twelve lines of benchmark bonds on issue at 31 December 2020.
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