Exhibit (c)(v)
| | |
 | | MEDIA RELEASE |
| | Embargo: 4:30pm AEST |
| | 10 December 2008 |
QTC announces mid-year review of its 2008-09 Indicative Borrowing Program
Queensland Treasury Corporation (QTC), the Queensland Government’s central financing authority and financial risk management adviser, has revised its estimated borrowing requirement for the 2008–09 financial year down by $284 million to $16,048 million, following yesterday’s release of the Queensland State Budget Mid-Year Fiscal and Economic Review (www.treasury.qld.gov.au).
The borrowing estimate comprises $6,667 million required to refinance maturing debt (principally the July 2009 Benchmark bond) and net $9,381 million to meet the capital works and asset procurement requirements of the Queensland public sector. (See attachment for further details.)
Capital works expenditure is forecast to increase by $458 million over the 2008-09 Budget, largely as a result of some planned capital works previously scheduled for 2007-08 now occurring in 2008-09 and the outyears. Funding will be met from excess liquidity, which was previously built-up as a result of the global credit crisis.
Capital expenditure in the State this year, including local authorities, is expected to be more than $20 billion, with the debt portion of $13.1 billion to be funded by QTC.
Review of 2008–09 funding activity to December 2008
Despite the uncertainty in the financial markets, including the Australian Government’s changes to Interest Withholding Tax laws and the implementation of the government guarantee of bank wholesale funding, investor demand for QTC A$ benchmark bond lines was evident over the past 6 months and provided the majority of funding. Demand for QTC’s commercial paper remained strong as investors continued to seek high credit quality assets in an uncertain global market environment.
QTC’s current raisings towards its 2008–09 borrowing requirement are approximately $13,000 million. The balance of approximately $3,000 million required to meet the total funding requirement will be raised through the issuance of a mix of benchmark bonds, MTNs and commercial paper, contingent on pricing and prevailing market conditions.
GPO BOX 1096, BRISBANE QLD AUSTRALIA 4001
TELEPHONE 07 3842 4600 — FAX 07 3221 4122
www.qtc.com.au
It is estimated that the change in outstandings for QTC’s funding facilities over the first half of 2008-09 financial year will be as follows:
| | | | | | | | |
Funding facility | | 30 June 2008 | | 31 December 2008 | | | Change | |
| | | A$M | | A$M (estimate) | | | A$M (estimate) | |
Domestic benchmark bond | | 26,275 | | 32,459 | | | 6,184 | |
Global benchmark bond | | 14,380 | | 14,622 | | | 242 | |
Capital indexed bond** | | 583 | | 731 | | | 148 | |
Domestic non-benchmark bond | | 595 | | 605 | | | 10 | |
Euro medium-term note (MTN) | | 418 | | 818 | | | 400 | |
Commercial paper | | 1,467 | | 3,834 | | | 2,367 | |
| | | | | | | | |
Total | | 43,718 | | 53,069 | (estimate) | | 9,351 | (estimate) |
| | | | | | | | |
| ** | includes capital indexation |
Outlook for future funding requirements
Looking forward, it is anticipated that future QTC borrowing programs will continue to reflect the Queensland Government’s ongoing commitment to significant investment in the development of the State’s infrastructure.
QTC’s indicative borrowing program for the 2009–10 financial year is scheduled for release in June 2009.
ENDS
For further enquiries, please contact:
Richard Jackson, General Manager, Financial Markets Ph: +61 7 3842 4789
Mike Gibson, Senior Portfolio Manager, Funding Ph: +61 7 3842 4775
QTC Media Release attachment (10 December 2008)
QTC 2008-09 Indicative Borrowing Program
Mid Year Update
| | | | | | |
Borrowing details | | 2008-09
Mid-year Update | | | 2008-09
Original | |
| | | A$M | | | A$M | |
Refinancing of maturing debt: | | | | | | |
A$ benchmark bonds | | 0 | | | 0 | |
A$ non-benchmark bonds | | 69 | | | 69 | |
Medium-term notes (MTNs) | | 0 | | | 0 | |
Commercial paper1 | | 1,457 | | | 1,457 | |
| | | | | | |
Total maturing debt | | 1,526 | | | 1,526 | |
| | |
Adjustments: | | | | | | |
Prefunding of Jul 2009 Benchmark Bond maturity | | 5,741 | | | 5,741 | |
Principal repayments from QTC customers | | (600 | ) | | (600 | ) |
| | | | | | |
Total refinancing | | 6,667 | | | 6,667 | |
| | |
New borrowing: | | | | | | |
Capital works and asset procurement | | 13,081 | | | 12,365 | |
Funding in advance of customer borrowings | | (3,700 | ) | | (2,700 | ) |
| | | | | | |
Total new borrowing | | 9,381 | | | 9,665 | |
| | | | | | |
TOTAL BORROWING PROGRAM2 | | 16,048 | | | 16,332 | |
| | | | | | |
| 1. | Estimated commercial paper outstanding as at 30 June. |
| 2. | Funding activity may vary depending upon actual customer requirements, the State’s fiscal position and financial market conditions. |
