History - 2012-2016

Securing Queensland’s future financial success

In 2012, QTC farewelled Stephen Rochester following his resignation after almost a quarter of a century of visionary leadership as QTC’s inaugural Chief Executive and then Chairman. Amidst a challenging operating environment, including continued uncertainty and volatility in the global financial markets and changes in government at both the State and local levels, QTC welcomed its third chairman, former Under-Treasurer of Queensland, Gerard Bradley.

QTC’s expertise continued to be sought across a range of significant client and government initiatives, including Projects Queensland, established to analyse and deliver major infrastructure across the State. QTC’s experience and capacity to assess the most appropriate financial outcomes that deliver the best financial outcomes for the State was also demonstrated in its involvement in the sale of $2.3 billion worth of shares in Aurizon Holding’s Ltd (formerly QR National) in October 2012 and March 2013.

As QTC looks forward, its focus continues to be delivering its core funding and debt management business, to ensure it meets the State’s financing requirements. In this way, QTC will continue its contribution and commitment to a sustainable financial future, for all Queenslanders.

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Building on the legacy

In May 2012, QTC farewelled Stephen Rochester after almost a quarter of a century of visionary leadership as QTC’s inaugural Chief Executive and then Chairman. In these roles, Stephen was responsible for creating the organisation’s unwavering commitment to maintaining open and transparent relationships with the global financial markets. He also demonstrated considerable foresight as he promoted QTC’s whole-of-State and client-focused approach to business. This has ensured QTC’s position as an innovative leader in its field and a positive partner in creating and delivering value for Queensland’s public sector organisations.

Amidst a challenging operating environment, including volatility in global financial markets and changes at local and State levels of government, QTC welcomed its new Chairman, Gerard Bradley. Prior to this appointment, Gerard was the Under Treasurer and Under Secretary of the Queensland Treasury Department, a position he held from 1995 to 1996 and 1998 to 2012. As a former QTC Board member from 2000 to 2007, Gerard’s extensive experience in public sector finance provided QTC a strong and stable platform to focus its core funding and debt management businesses.

Building on the legacy of Sir Leo Hielscher AC and Stephen Rochester; QTC, under the helm of Chairman, Gerard Bradley and Chief Executive, Philip Noble, continued its long-standing commitment to keeping its investors fully informed of funding activities and ensuring its debt products respond to financial market requirements, as it delivers innovative financial risk management solutions to its clients.

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Solutions through expertise

The flexibility of QTC’s client-focused operating model continued to be demonstrated through the capacity to provide immediate resourcing to meet the financial and risk management needs of its clients. QTC’s expertise was sought across a number of major client projects and initiatives that required unique solutions to complex financial and funding issues.

In June 2012, the Queensland Government’s Department of Treasury and Trade announced the formation of a new body, Projects Queensland, to target the improvement of infrastructure outcomes throughout the State. QTC has provided significant resources and expertise to this team, to support its enhanced mandate for involvement in significant public sector infrastructure projects.

Projects Queensland represents a key element in the encouragement of new partnerships between Government and private investors to help deliver infrastructure outcomes. Through this team, QTC’s skilled experts provide the resources necessary for the delivery of services that assist its clients in the assessment, procurement and delivery of major infrastructure projects.

In line with its operating philosophy to partner with its clients to achieve improved financial outcomes for their organisations and the State, QTC continued to commit considerable resources to supporting the State’s public sector organisations in the 2011-12 year, including the newly-elected State and local government representatives in their financial and risk management activities. Through these engagement activities, QTC continues to provide its clients with the best advice and solutions to assist them to respond to emerging issues and meet their planned objectives, thereby adding value to their business and the broader economic position of the State.

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QR National facilitating a billion dollar sale

On 8 October 2012, the Queensland Government announced its sale of $1.5 billion worth of shares in QR National in a deal that maximised benefits for Queensland taxpayers. QTC played a key role in the negotiations and in bringing the transaction to a close.

The QR National deal involved the sale of $1 billion of shares via a selective buyback to QR National, and a $500 million placement to a small number of cornerstone investors. The $1.5 billion sale represented a gain of around $400 million to Queensland’s bottom line since the Initial Public Offer, with fees for the deal kept to a minimum.

With the best possible price achieved for the sale, this deal represented a significant outcome for all Queenslanders.

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Assisting the Queensland Boundaries Commission

In 2012, QTC was also called upon to assist the Queensland Boundaries Commission to review local government de-amalgamation proposals referred to it by the Minister for Local Government. The Commission was appointed to review local government de-amalgamation proposals in an open and logical way and assess these proposals against a set of financial, social and economic criteria. QTC’s expertise was sought to assist the Commissioner analyse the financial aspects of the de-amalgamation proposal and undertake an analysis of the costs of de-amalgamation.

QTC has played a key supporting role over the years in creating a financially sustainable future for Queensland’s local governments. Through its financial sustainability reviews, financial forecasting models and assistance across a wide range of funding and risk activities, QTC has continued to collaborate and partner with local governments to create and deliver unique and relevant value for Queensland’s public sector.

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Continuing to set the benchmark

In February 2012, QTC became the first Australian semi-government issuer with the capability to issue domestic $A bonds directly in to the United States (US) debt capital markets through the Australian clearing system, Austraclear.

With the assistance of Deutsche Bank (as QTC’s lead manager in the US) and external US lawyers, QTC updated its Domestic $A Bond Program to include a US Rule 144A capability.

The addition of the new capability allows QTC to broaden its primary market issuance in the US, meaning US investors no longer have to wait a 40 day seasoning period before purchasing QTC’s bonds.

This change was implemented as part of QTC’s funding strategy to offer investors diverse funding facilities, which meet market requirements, as well as ensuring cost-effective funding for QTC’s clients and the State.

QTC’s Fixed Income Distribution Group welcomed the addition of the Rule 144A distribution capability to QTC’s program describing it as ‘ground breaking for Australian borrowers’.

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Looking forward securing Queensland's financial success

As QTC passes its 30th year since its incorporation on 12 May 1988, it moves into a new era for both the organisation and the State of Queensland. While acknowledging the volatility of global financial markets and the challenges facing our clients, at the same time QTC recognises its strengths, including a talented and committed workforce, expertise in providing significant value to clients and the State and a strong reputation in global financial markets.

Building on its foundation of achievements and successes, QTC’s focus is on its core funding and debt management business, to ensure it meets the State’s financing requirements and contributes to a sustainable future for the State and its partners. In this way, QTC will continue to deliver optimal financial outcomes through sound funding and financial risk management, to secure Queensland’s financial success.

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