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 eleven lines of benchmark bonds on issue at 31 July 2019.

Coupon Maturity Amount on Issue
7.00%  15/10/2019  A$2,735.489 million
2.50% 22/07/2020 A$6,097.166 million
7.00% 15/07/2021 A$6,011.735 million
2.75% 20/10/2022 A$5,013.330 million
6.00% 16/10/2023 A$3,691.294 million
2.50% 23/07/2024 A$3,403.670 million
5.00% 23/07/2025 A$3,700.200 million
3.00% 21/10/2026 A$3,913.600 million
3.00% 21/10/2027 A$2,250.680 million
3.25% 20/07/2028 A$2,512.560 million
2.75% 24/07/2029 A$1,775.200 million
Total A$41,104.924 million