Funding Strategy

TCV 2023-24 Funding Strategy

TCV maintains four financing programs. They are designed to ensure access to both domestic and international financial markets across the maturity spectrum. The four programs are as follows:

  • Domestic Benchmark Bond Program
  • Euro Medium Term Note Program (EMTN)
  • Domestic Promissory Note Program (Pnote)
  • Euro Commercial Paper Program (ECP).

Activity in each program is predominantly facilitated by a dealer panel.

The 2023-24 long-term funding requirement will be predominantly funded through the Domestic Benchmark Bond program. TCV will consider non-AUD issuance when issuance conditions are favourable and meet the demand of TCV’s borrowing clients.

The TCV funding strategy will continue to focus on accessing markets via a combination of bond tenders, syndication, and reverse enquiry.

The $33.7 billion funding task implies a monthly target of around $3 billion, however actual issuance will vary according to the timing of our client funding requirements, the State’s liquidity metrics, and with consideration to market conditions.

TCV will hold regular tenders via Yieldbroker DEBTS. The timing of these tenders, the specific bonds and the volumes to be offered will be announced to the market when appropriate. Syndications will be conducted periodically and will predominately be utilised to establish new bond lines or when adding larger sized issuance to existing bond lines. Reverse enquiry, which allows TCV to respond to specific investor demand, will continue to remain an important and significant part of our overall funding activity and will be conducted through the TCV Dealer Panel.

The TCV funding activities for 2023-24 will focus on:

  • building outstandings in our existing benchmark bond lines
  • establishing new benchmark bond lines when appropriate
  • additional issuance under TCV’s Sustainability Framework
  • adding to our existing FRN benchmark curve
  • maximising the diversity of our investor base through our direct investor engagement and flexible issuance strategies.

TCV’s short-term borrowing activities will continue to be sourced from our Australian Dollar Domestic Promissory Note program and the Euro Commercial Paper program. The mix of issuance will be determined by relative pricing and demand conditions in each of these markets.