Budget 2011-12 Budget Paper No.3 The Budget
Tabled paper 1279
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.
72 Northern Territory Treasury Corporation The Corporation has maintained six major bond series throughout the year with a combined value of approximately $2.3 billion. These issues have been established to meet investor demand for liquidity and promote greater market awareness. Another major bond series is expected to be established in May 2011, maturing in November 2016. The borrowing program in 2011-12 will be approximately $728 million, comprising refinancing maturing debt and financing of additional borrowings. 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 2010-11 Budget 2010-11 Estimate 2011-12 Budget Weighted average cost of borrowings during the year1 6.50% 6.00% 6.50% Borrowing rate margin compared to industry peers 0.20% 0.20% 0.20% Investment portfolio return above benchmark2 > indices > indices > indices Volatility of investment portfolio return against benchmark2 0.25% 0.25% 0.25% Stakeholder satisfaction 5 5 5 1 Borrowing cost forecasts are based on prevailing financial market expectations for interest rates. 2 The benchmark is measured against weighted relevant UBS Warburg indices.