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Funding Programme

TCorp’s Funding Role
Borrowing Requirements
TCorp’s Market Activities
Recent and Current Funding Requirements

TCorp’s Funding Role

TCorp finances NSW public authorities and the Government’s Budget within strict limits which are approved by the Treasurer and the Governor of New South Wales under provisions laid down in the Public Authorities (Financial Arrangements) Act, 1987. The borrowing requirements for the Government Budget and public authorities are finalised at Budget time for the upcoming financial year.

Borrowing Requirements

In any one year TCorp’s borrowing requirement can be made up of two main components. The first component is the borrowing requirement to refinance maturing TCorp bonds on issue. Secondly, TCorp has a new borrowing component that represents the net new funding requirements of the State Government and our other public sector clients. Please see below for the current requirement.

TCorp's Market Activities

 In accordance with managing its balance sheet of financial assets and liabilities,  TCorp is active in the markets for its own securities, transacting daily through its dealer group. Three factors determine this activity:

  • the need to periodically reposition the debt mix
  • the response to dealer panel approaches for issuance, repurchase or switching
  • the response to client authorities' decisions to re-shape their debt profiles

As a result of this regular activity, gross issuance is a far less meaningful measure than the net funding requirement.

Current and Forecast Funding Requirements

TCorp’s current and forecast funding requirements are as follows:

 

 

2005/06
$bn

2006/07
$bn

2007/08
$bn

2008/09
$bn

2009/10
$bn

Net Maturities

7.5

1.4

6.5

 1.6

5.5

Client Net Funding

2.0

2.0

4.2

7.2

9.9

Pre Funding of Maturities

(3.0)

(0.5)

(0.5)

 (3.5)

(5.0)

TCorp Net Funding Requirement

6.5

2.9

10.2

 5.3

10.4


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