Domestic Bonds

Summary
Market Support
Benchmark Series
Market Rates
Settlements
Ex Interest
Stock Lending
Latest Information

Summary

The majority of TCorp's borrowings are accessed through the Benchmark Bond Programme.  This programme issues large and liquid bond lines which are added to over time and are actively traded in financial markets. Investors traditionally buy these bonds to gain the liquidity of Commonwealth Government bonds but with a yield pick-up.  Outstandings comprise 60% to 80% of liabilities, which currently equates to $35bn to $40bn across seven bond lines.

The table below is a summary of TCorp’s Domestic Bond Programme.

Market Support

TCorp is committed to the continual support of its issued securities and provides stocklending and clearing facilities to panel members for small or odd-size parcels. As a result dealers can be confident of dealing in large or small volumes.

All TCorp bonds are guaranteed by the Government of New South Wales. Thus Domestic Benchmark and Global Exchangeable Bonds carry the top credit ratings of AAA from Standard & Poor’s and Aaa from Moody’s Investor Service.

Benchmark Series

The table below details the TCorp Benchmark Series Domestic Bonds.

Note: The Global Exchangeable Bonds were issued one week after the Domestic Bonds

Market Rates

Please Note: This information is also available on the Bloomberg page NSWT1 and Reuters page TCOT

Settlements

 Domestic Benchmark Bond settlements

TCorp’s benchmark stocks may be settled either:

• physically through Link Market Services, or
• through Austraclear.

Where settlement is on a physical basis and is for amounts over $100,000, payments to TCorp should be made using RTGS funds.

All inquiries regarding deals with TCorp should be directed to TCorp’s Operations Department:

Level 22, Governor Phillip Tower
1 Farrer Place, Sydney NSW 2000
Telephone: (02) 9325 9208
Written confirmation may be made by facsimile: (02) 9325 9355

Ex Interest

Pricing and Coupons All TCorp benchmark bonds pay interest coupons semi-annually on the first Sydney business day of the month. Pricing of TCorp securities follows the standard pricing formulae for Commonwealth Government Securities   Ex Interest Days Bonds are ‘ex’ interest at the close of business 7 clear calendar days before the coupon payment date, i.e. 8 calendar days immediately preceding payment date. If the coupon or maturity date falls on a non-business day in Sydney, payment will be made on the succeeding business day.   Note: TCorp Global Exchangeable Bonds have a different ‘ex’ date convention.         TCorp Domestic Benchmark Ex Interest Dates Bond pricing goes ex interest at the close of business on the following dates: Stock Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7.0% 1 Dec 10 - -   - - 24 - - -  - - 23 - 6.0% 1 May 12  - -  -  23 -  -  -  - -  24 -  - 5.25% 1 May 13 - - - 23 - - - - - 24 - - 5.5% 1 Aug 14 24  -  - - -   - 24 -  -  - -  - 5.5% 1 Mar 17 - 21 - - - - - 24 - - - - 6.0% 1 Apr 19 - - - 23 - - - - - 24 - - 6.0% 1 Jun 20 - - - - 24 - - - - - - 23  6.0% 1 May 23 - - - 23 - - - - - 24 - -

Stock Lending

TCorp operates a stocklending facility for its Benchmark Bond Dealer Panel. A flat fee of $25 per million per day is currently charged. This may be increased to discourage ‘over-shorting’, or decreased to support new issues. Stock is lent under TCorp’s designated credit limits, either unsecured or in exchange for other securities or cash deposits.

Latest Information

Information regarding closing rates, amounts on issue and turnover for TCorp stock is regularly updated and available on:

• Bloomberg pages NSWT1-6
• Reuters pages TCOR-W