216-17 FUNDING YEAR IN REVIEW AS AT 3 JUNE 217 1
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216-17 year in review ACCESS TO FUNDING Diverse funding facilities Over the year, QTC maintained its diversified global focus to meet its funding requirements. As at 3 June 217 QTC had AUD89.9 billion of debt outstanding. AUD BENCHMARK BONDS 81.6% AUD AGG* BONDS 5.5% AUD CAPITAL INDEXED BOND 1% FRN 2.8% OTHER.4% AUD TREASURY NOTES 5% US & EURO CP 1% EURO MTN 2% GREEN BOND.8% * AGG - Australian Government Guaranteed. Note: May not add to 1% due to rounding. FUNDING HIGHLIGHTS completed AUD5.9 billion term debt borrowing program pre-funded AUD2.4 billion for future borrowing programs issued AUD5.75 billion of benchmark bonds via public issuance including a new 227 benchmark bond issued AUD75 million of a new 224 green bond, the largest by an Australian issuer to date issued AUD615 million equivalent of new 3 year Euro and AUD bonds turnover of AUD136 billion of QTC bonds in the secondary market bought back and cancelled AUD3 billion of QTC debt maturing between September 217 and February 218 3
216-17 year in review 216-17 TERM DEBT ISSUANCE 216-17 public issuance 4, 3,6 3,853 3,2 2,8 2,4 1,6 1,2 8 4 1,25 5 1,15 5 1,45 1,5 5 2,375 1,396 1,214 1,18 1,157 1,115 75 75 5 5 5 5 5 July 216 226 benchmark bond Tender 16 August 216 226 benchmark bond Tender 6 September 216 223-26 benchmark bond lines Multi-bond line tender 27 October 216 227 benchmark bond Syndicated new bond 22 November 216 225-26 benchmark bond lines Multi-bond line tender 24 January 217 225 benchmark bond Tender 9 February 217 227 benchmark bond Syndicated tap 15 March 217 224 Green Bond Syndicated new bond 4 April 217 227-28 benchmark bond lines Multi-bond line tender 25 May 217 221-23 benchmark bond lines Multi-bond line tender AMOUNT RAISED BIDS RECEIVED 216-17 bond syndicated transactions by investor location On average, QTC saw growth from domestic markets in its syndicated benchmark bond transactions. EUROPE 5% ASIA 13% AUSTRALIA 77% NORTH AMERICA 5% 216-17 bond syndicated transactions by investor type Semi-Gov 1% Hedge Funds 2% Central Banks 6% Trading Desks 15% Bank Balance Sheets 13% TOTAL $3,m 62% Fund Managers Note: May not add to 1% due to rounding. 4
216-17 year in review OUTSTANDINGS BY MATURITY AUD benchmark bonds 1 1, TOTAL: AUD68,74M as at 3 June 216 TOTAL: AUD73,31M as at 3 June 217 n13 liquid benchmark lines n7 lines with 144A capability 8, 144A capability 6, 4, 21 Sep 17 3.5% 21 Feb 18 6.% 21 Jun 19 4.% 21 Feb 2 6.25% 21 Jun 21 5.5% 21 Jul 22 6.% 21 Jul 23 4.25% 22 Jul 24 5.75% 21 Jul 25 4.75% 21 Jul 26 3.25% 2 Aug 27 2.75% 21 Jul 28 3.25% 14 Mar 33 6.5% AUD non-benchmark bonds 3,5 3, 2,5 1,5 1, 5 181 87 2,5 2,944 1,11 75 TOTAL: AUD8,886m as at 3 June 217 663 3 nglobal lines are transferable into domestic lines naustralian Government Guaranteed bonds may be switched into equivalent benchmark bonds, which are explicitly guaranteed by the Queensland Government 144A capability * AGG: Australian Government Guaranteed The 2 Aug 3 2.75% outstandings do not include indexation of $212.1 million. 14 Sep 17 6.% 19 Nov 18 3mBBSW+6 14 Jun 19 6.25% 14 Jun 21 6.% 22 Mar 24 3.% 2 Aug 3 2.75% 2 Feb 47 4.2% DOMESTIC AGG* GLOBAL AGG* FLOATING RATE NOTE GREEN BOND CAPITAL INDEXED PREFERRED 5
216-17 year in review SHORT-TERM DEBT ISSUANCE Commercial paper and treasury note programs, 216-17 tenor of issuance 12 1 8 58% ncontinued access to short-term funding naustralian, Euro and US programs naustralian dollar and multi-currency Note: May not add to 1% due to rounding. 6 33% 4 2 2% -2 months 7% 2-3 Months 3-6 months 6-9 months CREDIT RATINGS Moody s Investor Service rating outlook for Queensland was revised from negative to stable on 2 April 217. Long-Term Short-Term Outlook Local currency Moody s Aa1 P1 Stable Standard & Poor s AA+ A-1+ Stable Foreign currency Moody s Aa1 P1 Stable Standard & Poor s AA+ A-1+ Stable Government guaranteed nall debt issued by QTC is explicitly guaranteed by the Queensland State Government. 6
217-18 funding requirements 217-18 TERM DEBT INDICATIVE BORROWING PROGRAM QTC released its 217-18 term debt indicative borrowing program on 14 June 217. Requirements 217-18 BUDGET AUD M* State (includes general government and government-owned corporations) Local Government and other entities # 6 Total new money 6 Term debt maturities 9 4 Net funding in advance^ (3 2) Net term debt refinancing 6 2 Total term debt requirement 6 8 * Numbers are rounded to the nearest $1 million. # Other entities include: universities, grammar schools, retail water entities and water boards. ^ Includes net issuance undertaken in advance of borrowing requirements during 216-17 and also in previous financial years as well as scheduled client principal repayments. Note: Funding activity may vary depending upon actual client requirements, the State s fiscal position and financial market conditions. 217-18 funding strategy nqtc s AUD benchmark bonds will remain its principal source of funding. This may include issuance of new longer dated AUD benchmark bond maturities. nqtc will monitor the market for opportunities to issue non-benchmark term debt instruments to complement benchmark bond issuance. This may include issuance of green bonds, bond maturities out to 3 years, floating rate notes and non-aud denominated bonds. nqtc will continue to utilise a range of issuance methods to issue term debt including syndication, bond auctions and reverse enquiry taps. nqtc will continue to maintain a minimum of approximately AUD5 billion of short-term debt outstandings. ANNUAL TERM DEBT BORROWING PROGRAMS 2, 18, 16, 14, 1 1, 8, 6, 4, 2-1 21-2 22-3 23-4 24-5 25-6 26-7 27-8 28-9 29-1 21-11 211-12 212-13 213-14 214-15 215-16 216-17 FORECASTS 216-17 borrowing program 217-18 borrowing program 217-18 218-19 219-2 22-21 2, 18, 16, 14, 1 1, 8, 6, 4, QTC s borrowing requirements over the forward estimates are primarily expected to reflect term debt refinancings. The lighter shaded bars compare the forecasts from the 216-17 borrowing program to the 217-18 borrowing program. ACTUAL TERM DEBT RAISED NET NEW MONEY STATE GOVERNMENT NET NEW MONEY OTHER ENTITIES # NET TERM DEBT REFINANCING # Other entities include: universities, grammar schools, retail water entities and water boards. 7
Fixed Income Distribution Group QTC s Fixed Income Distribution Group is made up of 12 banks, who are committed to providing investors with two-way pricing in the secondary market, as well as supporting primary issuance activity. Information sources for QTC investors Investor booklet QTC s investor booklet contains detailed information and data about Australia, Queensland and QTC. Invest in QTC QTC s Invest in QTC app has a library of publications for investors and is available for Apple and Android users. Note: Not available in the United States Regular updates QTC provides quarterly funding updates and market announcements. Visit QTC s website to subscribe. Website QTC s website provides information for institutional investors about QTC s funding programs, annual borrowing program, credit rating, and recent news and publications. 8 T: +61 7 3842 46 F: +61 7 3221 241 qtc.qld.gov.au BLOOMBERG TICKER: QTC Download the Invest in QTC app for ios and Android