Budget 2012-2013 Budget Paper No.3 The Budget
Tabled paper 1785
Tabled Papers for 11th Assembly 2008 - 2012; Tabled Papers; ParliamentNT
Tabled By Delia Lawrie
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
70 Northern Territory Treasury Corporation semigovernment issuers. Market conditions have been mixed since then and the Corporation expects the 201112 borrowing margin to be approximately 0.40percent at year end. The Corporation has maintained seven major bond series throughout the year with a combined value of approximately $3.2 billion. These issues have been established to meet investor demand for liquidity and promote greater market awareness. Two major bond series were established in 201112, one maturing in November2017, the other maturing in September2018, of which approximately $420million contributes towards the funding requirement in 201213. The Corporation will continue to focus on domestic sources, including retail and institutional investors, for its borrowing program. Business Line: Government Loans and Investments Outcome: Optimised investment revenue generation and loan funding for the Territory. Funding loans to Government using appropriate borrowing strategies and risk management principles. Investment of the Governments surplus cash balances on behalf of the Central Holding Authority, with the aim of optimising returns within approved guidelines and cash flow requirements. Key Deliverables 201112 Budget 201112 Estimate 201213 Budget Weighted average cost of borrowings during the year1 6.50% 5.00% 6.00% Borrowing rate margin compared to industry peers2 0.20% 0.40% 0.50% Investment portfolio return above benchmark3 > indices > indices > indices Volatility of investment portfolio return against benchmark3 0.25% 0.25% 0.25% Stakeholder satisfaction4 5 5 5 1 Borrowing cost forecasts are based on prevailing financial market expectations for interest rates. 2 Increase in borrowing margin reflects increased market volatility. 3 The benchmark is measured against weighted relevant UBS Warburg indices. 4 Measures range from a rating of 1 = extremely dissatisfied through to 6 = extremely satisfied.