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Northern Territory Treasury Corporation Annual report 2013-2014



Northern Territory Treasury Corporation Annual report 2013-2014


Department of Treasury and Finance reports; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals

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Dept. of Treasury and Finance

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11Annual Report 2014 Promissory Notes NTTCs short-term funding requirement is met through its promissory note facility. These notes are issued by way of tender to our main banking counterparties. The promissory note facility was used throughout the year to meet short-term funding requirements and as at 30 June 2014, the outstanding promissory notes are $100million. The weighted average yield achieved for the financial year was 2.56percent (2012-13:3.11percent), with an average margin to BBSW reference rate of -0.05percent. The issuing margins to BBSW in 2013-14 ranged from -0.04 percent to -0.06percent. Migration Linked Bonds The bonds offered by NTTC satisfy the criteria of a Designated Investment under the following programs administered by the Department of Immigration and Border Protection: Business Innovation and Investment Programme Investor Retirement Migration NTTC received a $250000 application for Designated Investments during the financial year, which brought the total on issue as at 30 June 2014 to $1.5million. Territory Bonds Territory Bonds is NTTCs retail fixed interest borrowing product and is used to attract funds from the general public. Territory Bonds has been issued since 1979 and is offered to investors seeking a safe, secure, government-guaranteed investment. In 2013-14, a total of $26.1million was raised from 1128 applications, which was slightly lower than last years result of $26.4million from 1172applications. As at 30June 2014, total outstanding Territory Bonds on issue stood at approximately $101million, down from the $108million recorded at the end of the fiscal year 2013. Territory Bonds has become a more cost-effective borrowing source over the last ten years due to the increase in the average investment size per bond holding. This trend continued in 2013-14 and, as Figure 5 below shows, the average investment size has continued to rise and has almost tripled since June2004. Figure 5: Territory Bonds Outstanding and Average Holding Size In ve st m en t S iz e A m ou nt O ut st an di ng 50 75 100 125 150 175 200 225 250 275 Total Outstanding Balance Average Investment Size $M $000 5 7 9 11 13 15 17 19 21 Ju n 04 D ec -0 4 Ju n 05 D ec -0 5 Ju n 06 D ec -0 6 Ju n 07 D ec -0 7 Ju n 08 D ec -0 8 Ju n 09 D ec -0 9 Ju n 10 D ec -1 0 Ju n 11 D ec -1 1 Ju n 12 D ec -1 2 Ju n 13 D ec -1 3 Ju n 14