Financial Markets Table 3: Borrowing Composition $M $M $M $M $M 427 363 376 295 441 Refinance maturing 479 207 325 - 46 Territory debt New 906 570 701 295 487 borrowings 492 190 - - Borrowing requirement Total borrowing program 1 398 570 891 295 487 issued to Borrowing Activity institutional investors via tap increases of The borrowing requirement was significantly higher than last year, with existing approximately $906 million raised to refinance maturing debt and additional borrowings to fund capital and operating bond series and creation of new bond expenditure for Northern Territory issues on a syndication basis. A full listing Government agencies, business divisions of the Corporation’s issued debt is and corporations. In addition, the provided in Appendix A on page 31. Corporation committed to part of the program, which resulted in The Corporation’s funding requirement in raising a further resulted in the establishment of $492 million, taking the total borrowing two new benchmark lines of bonds program for to $1398 million. This maturing in November 2017 and follows $570 million raised in and September 2018. As at 30 June 2012, the $891 million in as shown in Table Corporation had seven institutional 3. benchmark As in recent years, the Corporation’s bond issues as detailed in Table 4. entire borrowing requirement was met Table 4: Institutional Bond Issues as at 30 from domestic financial and retail June 2012 markets. The bulk of the funds were raised through a number of medium to Maturity Date Coupon Amount on fixed interest securities, Table 5: Borrowing Performance as at 30 June % % % % % Average borrowing margin 0.04 0.04 - 0.05 0.21 margin to bank bill – 0.14 swap (BBSW) rate - (floating rate) margin to – 0.10 swap (fixed rate) margin – 0.38 to AAA rated 0.22 0.24 0.13 0.11 security Cost of borrowing achieved during the 4.86 year 5.29 5.70 5.96 6.67 Weighted average cost of borrowing 5.67 6.10 6.15 6.10 6.34 Total cost of funds Weighted average cost of funds
Financial Markets Table 3: Borrowing Composition Refinance maturing Territory debt New borrowings Borrowing requirement $M 427 479 906 492 $M $M $M $M 363 376 295 441 207 325 46 570 701 295 487 - 190 Total borrowing program 1 398 570 891 295 487 Borrowing Activity The borrowing requirement was significantly higher than last year, with approximately $906 million raised to refinance maturing debt and additional borrowings to fund capital and operating expenditure for Northern Territory Government agencies, business divisions and corporations. In addition, the Corporation committed to part of the program, which resulted in raising a further $492 million, taking the total borrowing program for to $1398 million. This follows $570 million raised in and $891 million in as shown in Table 3. As in recent years, the Corporation’s entire borrowing requirement was met from domestic financial and retail markets. The bulk of the funds were raised through a number of medium to fixed interest securities, issued to institutional investors via tap increases of existing bond series and creation of new bond issues on a syndication basis. A full listing of the Corporation’s issued debt is provided in Appendix A on page 31. The Corporation’s funding requirement in resulted in the establishment of two new benchmark lines of bonds maturing in November 2017 and September 2018. As at 30 June 2012, the Corporation had seven institutional benchmark bond issues as detailed in Table 4. Table 4: Institutional Bond Issues as at 30 June 2012 Maturity Date Coupon Amount on Table 5: Borrowing Performance as at 30 June Average borrowing margin – margin to bank bill swap (BBSW) rate (floating rate) – margin to swap (fixed rate) – margin to AAA rated security Cost of borrowing achieved during the year Weighted average cost of borrowing Total cost of funds Weighted average cost of funds % - 0.04 0.38 4.86 5.67 % % % % - 0.04 0.05 0.21 0.14 - 0.10 0.22 0.24 0.13 0.11 5.29 5.70 5.96 6.67 6.10 6.15 6.10 6.34 -
AR-NTTC-1112.docx