Queensland Treasury Corporation

Queensland Treasury Corporation (QTC) is the Queensland government’s central financing authority. It provides a range of financial services to the state and its public-sector entities, including local governments. These services include debt funding and management, cash management facilities and financial risk management advisory services.

QTC is 100% owned by the Queensland government. It was established in 1988 and is a corporation sole, constituted by the under treasurer of the state of Queensland in accordance with the Queensland Treasury Corporation Act 1988.

The treasurer of Queensland, on behalf of the state government, guarantees QTC’s obligations under all debt securities QTC issues, as well as all payment obligations to counterparties under derivative transactions.

All financial risks – including cost-effective and sustainable funding, interest rate, foreign exchange and counterparty risk – are strictly managed within QTC’s board-approved risk-appetite parameters. To minimise funding and refinancing risk, QTC manages its funding task using diversified global facilities and actively borrows along the yield curve.

QTC aims to access funding across a diversified investor base, with a range of short- and long-term funding facilities in a variety of markets and currencies.

Facilities include Australian dollar denominated bonds from benchmark and nonbenchmark programmes, multicurrency EMTN and US MTN deals, domestic treasury notes, and ECP and US CP programmes. QTC’s benchmark Australian dollar bond programme has 144A capability allowing issuance of new bond lines directly into the US to “qualified institutional buyers” pursuant to the Rule 144A exemption.

QTC’s Australian dollar benchmark bonds will remain the principal source of funding with 14 established lines ranging from 2022-34 maturities. Complementary to this, QTC will consider issuance of other term-debt instruments such as green bonds, bond maturities out to 30 years, FRNs and foreign-currency denominated bonds. In financial year 2021/22, QTC has issued new lines including a 2032 green bond and a new 2033 benchmark bond. 

QTC bonds are eligible for outright holding by the Reserve Bank of Australia (RBA) and are eligible collateral for repurchase agreements with the RBA. They are 0% risk weighted for the Australian Prudential Regulation Authority’s bank capital adequacy requirements.

• This profile was prepared by KangaNews from publicly available information.