Borrowing Program

2020–2021 borrowing program update

*Data current as at 3 March 2021. 

 

Following the Queensland 2020–21 State Budget release, Queensland Treasury Corporation (QTC) estimates it will have a borrowing program of AUD21.0 billion term debt for the 2020–21 financial year. This figure remains unchanged from the indicative term debt borrowing program announcement following the release of the Queensland Government’s COVID-19 Fiscal and Economic Review in September 2020.

2020–21 indicative term-debt borrowing program

Requirements 2020-21 AUDm1 2021-22 AUDm1 2022-23 AUDm1 2023-24 AUDm1
State2 17,700 11,800 9,900 7,100
Local Government and other entities3 1,300 800 1,100 1,100
Total new money 19,000 12,600 11,000 8,200
Term debt maturities 8,200 2,600 10,700 9,600
Net funding in advance4 (6,200) 7,400 400 (100)
Net term debt refinancing 2,000 10,000 11,100 9,500
Total term debt requirement 21,000 22,600 22,100 17,700
Data current as at 1 December 2020. 
1. Numbers are rounded to the nearest AUD100 million.
2. Includes general government and government-owned corporations.
3. Other entities include: universities, grammar schools, retail water entities and water boards.
4. Includes net issuance undertaken in advance of borrowing requirements during 2019–20, as well as scheduled client principal repayments.
Note: Funding activity may vary depending upon actual client requirements, the State's fiscal position and financial market conditions.

2020–21 funding strategy

  • QTC’s 2020–21 funding strategy is likely to include the following, subject to market conditions and client funding requirements:
  • Issuance of QTC’s AUD benchmark bonds as the principal source of funding.
  • Issuance of a AUD 2032 benchmark bond and consideration of further longer-dated AUD benchmark bond maturities.
  • Issuance of term debt instruments to complement AUD benchmark bond issues. This may include issuance of green bonds, bond maturities out to 30 years, floating rate notes and non-AUD denominated bonds.
  • A continued programmatic approach to issuance, including syndication, reverse enquiry and frequent tenders.
  • Maintaining a minimum of approximately AUD5 billion of short-term debt outstandings.

Short-term debt

QTC expects to maintain a minimum of approximately AUD5 billion of short-term debt outstandings. 

QTC's annual term debt issuance (actual and forecast*)

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Data current as at 1 December 2020. 
* Does not include short-term debt of approximately AUD5 billion each year. Actual debt raised is calculated from Annual Borrowing Program release to the release of the next Annual Borrowing Program, except for 2019–20 due to out of cycle Annual Borrowing Program release.