Public Finance Unit Wins World Standing
Established in 1983 as the central financing authority for the New South Wales public sector, the New South Wales Treasury Corp., or T-Corp, has achieved an enviable reputation in Australian and international capital markets.
The T-Corp raises capital funding for public authorities, which use these funds for productive purposes such as electricity and water supply, rail transport, highways, and port facilities. These client authorities have strong customer bases and cash flows, and they are a significant and stable sector of the New South Wales economy.
The T-Corp actively manages liability and asset portfolios and is one of the prime participants in Australian financial markets, with total assets of about $14.76 billion.
Leading Bond Issuer
It is the leading issuer of fixed-rate bonds in Australia, with eight "benchmark" lines of bonds averaging $1.165 billion per line (two exceed $1.94 billion).
These bonds are the most liquid and heavily traded in the Australian market, outstripping those of the Australian Treasury (turnover among market makers in T-Corp bonds exceeds $310 billion a year).
The bonds are guaranteed by the government of New South Wales, which is Australia's longest-established and economically dominant state and has a long record of prudent financial management.
Internationally, T-Corp is a well-known and highly regarded issuer. T-Corp pioneered "exchangeable" bonds for overseas investors, which are exchangeable at the broker's option, free of fees, into the equivalent and very liquid domestic bonds.
Active in Short-Term Securities
They are issued through a $2.33 billion global exchangeable bond program, both in Eurobond form and as placements to major U.S. institutions.
T-Corp is also a leading issuer of short-term securities, including promissory notes (commercial paper) in Australia, a Euro commercial paper and medium-term note program, and an Asian commercial paper program based in Hong Kong.
The corporation's securities have high ratings from the international credit rating agencies; and with their strong reputation and excellent liquidity, they are widely held by institutions and funds internationally, including major U.S. investors.