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 August 2020.

Coupon Maturity Amount on Issue
7.00% 15/07/2021 A$5,705.965 million
2.75% 20/10/2022 A$5,146.241 million
6.00% 16/10/2023 A$4,696.794 million
2.50% 23/07/2024 A$4,316.870 million
5.00% 23/07/2025 A$4,049.252 million
3.00% 21/10/2026 A$4,173.600 million
3.00% 21/10/2027 A$2,730.680 million
3.25% 20/07/2028 A$3,167.860 million
2.75% 24/07/2029 A$2,666.200 million
1.75% 22/10/2031 A$1,515.000 million
2.00% 24/10/2034 A$878.740 million
2.25% 23/07/2041 A$461.850 million
Total A$39,509.052 million