Government guarantees

The Treasurer of Queensland, on behalf of the State Government, guarantees:

  • QTC’s obligations under the debt instruments issued by QTC, and
  • QTC’s payment obligations to counterparties under derivative transactions governed by ISDA agreements.

Queensland State Government Guarantee

In respect to all domestic securities issued by QTC, section 32 of the Queensland Treasury Corporation Act 1988 provides a statutory guarantee of QTC’s obligations to stockholders:

Section 32 The due repayment of principal on inscribed stock issued in accordance with this Act and, where payable, the due payment of interest relating to the inscribed stock are guaranteed by the Treasurer, on behalf of the Government.

Section 33 of the Queensland Treasury Corporation Act empowers the Treasurer to guarantee due payment of moneys and due performance of obligations in accordance with financial arrangements or other arrangements entered into by QTC. Such discretionary guarantees have been granted by the Treasurer and continue to operate in support of QTC’s offshore debt facilities.

All payments by the State Government under these guarantees are appropriated under section 34 of the Queensland Treasury Corporation Act, meaning they can be paid from the State’s Consolidated Fund without any further legislative approval.

Under each of these guarantees, the Treasurer has expressly waived sovereign immunity from prosecution, except in respect of a limited number of the State’s key strategic property assets such as Parliament House, the court houses, Governor’s residence and prisons.

All profits made by QTC accrue to the benefit of the Consolidated Fund of the State of Queensland and any losses of QTC are also the responsibility of the Consolidated Fund.

Domestic bond lines Global bond lines
6.00% 14 Sep 2017 6.00% 14 Sep 2017
6.25% 14 Jun 2019
6.00% 14 Jun 2021
As at 23 December 2009, Standard & Poor’s and Moody’s Investors Service assigned AAA/Aaa ratings respectively to the guaranteed bonds.