Borrowing Program

2021-22 Borrowing Program estimate as at 10 September 2021.

The 2021-22 Western Australian State Budget was handed down by the Hon. Mark McGowan MLA, Premier and Treasurer of Western Australia, on 9 September 2021. Following the budget release the Western Australian Treasury Corporation (WATC) announces its estimated term funding requirement for the 2021-22 financial year at $4.9 billion.

The WATC forecast borrowing program across the forward estimates period is detailed in the following table:

Term Funding Requirement 2021-22

$B

2022-23

$B

2023-24

$B

2024-25

$B

New money program (Est.) 2.1 0.4 0.1 0.1
           
     Projected Maturities
Bond 0.0 4.2 4.7 5.5
FRN 2.1 1.8 1.7 1.7
Total Maturities + New Money 4.2        6.4 6.5 7.3
Other – CP to Term 0.7  
Estimated Total Term Funding Requirement 4.9 6.4 6.5 7.3

 

WATC 2021-22 Funding Strategy

It is expected that WATC’s Benchmark Bond program will be the primary source of term funding, supplemented by Floating Rate Notes. Issuance into ultra-long tenor non-benchmark bonds may be considered subject to client and investor demand. However actual amounts and the composition of term funding is subject to the borrowing requirements of WATC’s clients and market conditions.

WATC will seek to build on volumes outstanding in existing bond and FRN lines. Issuance will continue to be undertaken through reverse enquiry, public tenders and syndications.

It is anticipated that two syndicated issues will be undertaken in 2021-22 comprising:
• a new Floating Rate Note in the 5 year maturity range, and
• a new benchmark bond with a maturity date between the current 22 October 2031 and 24 October 2034 benchmark bonds.

Timing for these syndications will be announced when appropriate.