TCorp Budget Presentation - 180614 SK · 13 / Strong Credit Rating • New South Wales is rated AAA...
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Budget 2014 New South Wales Briefing and Discussion, 18 June 2014, Sydney
Transcript of TCorp Budget Presentation - 180614 SK · 13 / Strong Credit Rating • New South Wales is rated AAA...
Budget 2014New South Wales
Briefing and Discussion, 18 June 2014, Sydney
2014/15 Funding Programme
Stephen KnightChief Executive
18 June 2014
/
Annual Borrowing Programme (A$bn)
2013/14 Forecast
2013/14Actual
2014/15 Forecast
New Lending to Clients 4.9 3.8 3.5
Term Maturities 4.0 4.0 5.3
Surplus Funding -3.6 -3.6 -2.5
Total Term Funding Requirement 5.3 4.2 6.3
Funding Programme
2014/15 Funding Programme2
/ 2014/15 Funding Programme3
Funding Programme
Source of Term Funding (A$bn) 2013/14Actual
2014/15 Forecast
Benchmark Bonds 5.1 3.0 - 5.0
Floating Rate Notes 1.2 0.5 - 1.5
Capital Indexed Bonds 0.2 0 - 1.0
Non Benchmark Bonds (1) 0.2 0.2 - 1.5
Total 6.7 6.3
(1) Non benchmark bonds includes EMTN, other Offshore Programmes and Waratah Bonds.Note: Short term funding is estimated to be maintained in the order of 4.0bn over the 2014/15 fiscal year.
/ 2014/15 Funding Programme4
Forecast Funding Programmes to FY18
-5
0
5
10
15
FY15 FY16 FY17 FY18
Funding Programmes to FY18
Maturing Borrowings New Client Loans Surplus Funding
$bn
/ 2014/15 Funding Programme5
As at June 2014
Client Loans by Sector
-10
10
30
50
70
90
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 (f/c) FY16 (f/c) FY17 (f/c) FY18 (f/c)
Client Loans by Sector$bn
Crown Electricity Water Ports Other
/ 2014/15 Funding Programme6
Electricity BorrowingsTotal Electricity Borrowings - $22bn
Ausgrid$9.2bn
Endeavour $3.8bn
Essential$4.9bn
Generators $1.3bn
Transgrid$2.8bn
/ 2014/15 Funding Programme7
TCorp and Australian Government 10 Year Bond Yields12 months to June 2014
3.5
4
4.5
5
5.5
Yield (%)
TCorp 2024 ACGB 2024
/ 2014/15 Funding Programme8
TCorp Spread to Australian Government Bonds10 Year Bond Yield Spread over last 15 Years
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Jun-99 Jun-02 Jun-05 Jun-08 Jun-11 Jun-14
% TCorp-CGS 10-year Spread
/ 2014/15 Funding Programme9
Maturity Profile as at June 2014
Benchmark Bonds
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Benchmark Bond Outstandings
State Guaranteed Cwlth Guaranteed
$bn
/ 2014/15 Funding Programme10
As at June 2014
TCorp Debt on Issue
0
30
60
90
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 (f/c) FY16 (f/c) FY17 (f/c)FY18 (f/c)
TCorp Debt on Issue$bn
Benchmark Bonds EMTN Other CPI Linked FRN
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TCorp Bond Holders (estimate)
Who Buys TCorp Bonds?
Australian Investment Managers
17%
Australian Banks39%
Central Banks18%
Offshore Investment Managers (ex Japan)
15%
Japanese Investment Managers
11%
/ 2014/15 Funding Programme12
Panel Total Turnover as at March 2014
Benchmark Bonds
0
5
10
15
20
25
Jun-
00Ju
n-01
Jun-
02Ju
n-03
Jun-
04Ju
n-05
Jun-
06Ju
n-07
Jun-
08Ju
n-09
Aug
-09
Oct
-09
Dec
-09
Feb-
10A
pr-1
0Ju
n-10
Aug
-10
Oct
-10
Dec
-10
Feb-
11A
pr-1
1Ju
n-11
Aug
-11
Oct
-11
Dec
-11
Feb-
12A
pr-1
2Ju
n-12
Aug
-12
Oct
-12
Dec
-12
Feb-
13A
pr-1
3Ju
n-13
Aug
-13
Oct
-13
Dec
-13
Feb-
14
Panel Member Monthly Turnover
FY10
$bn
FY11Historic 6-monthlyaverage
FY12 FY13 FY14
/13
Strong Credit Rating• New South Wales is rated AAA (neg outlook)/Aaa (stable) by credit rating agencies Standard & Poor’s and Moody’s
Investor Services
• The rating is supported by the strong institutional framework, a diversified economic base and considerable budget flexibility.
Sound Budget Position• Diversified economy
• Track record for maintaining expense growth below revenue growth
• Infrastructure renewal through recycling of assets.
Funding Strategy• Funding requirement for 2014-15 is $6.3bn
• Funding will be sourced primarily through the AUD benchmark nominal bond programme
• Other forms of potential issuance include floating rate note and moderate amounts in inflation linked bonds and retail programme.
Summary
2014/15 Funding Programme
Level 22, Governor Phillip Tower, 1 Farrer PlaceSYDNEY NSW 2000, AUSTRALIA
T: +61 2 9325 9325 F: +61 2 9325 9333W: tcorp.nsw.gov.au ABN: 99 095 235 825
This material is provided for information purposes only and is intended for your use only. The material should not be relied on for trading or other business purposes. The material does not constitute investment advice and NSW Treasury Corporation (TCorp) does not make any recommendation as to the suitability of any of the products or transactions mentioned. This material is not intended to forecast or predict future events. Past performance is not a guarantee or indication of future results. Any estimates and opinions contained in this material constitute TCorp’s judgement as at the date the material is made available and may be subject to change without notice. TCorp does not guarantee the accuracy, timeliness, reliability or completeness of the information or data and will not be liable for any errors or actions taken in reliance on the information or data.
