SAFA has the ability to provide funding solutions through a number of different market options.  These borrowing opportunities can be a tailored solution for a South Australian government agency.

SAFA Customer Services staff are available to provide advice regarding these products, in order to fulfil clients' individual borrowing requirements.

Types of loans

Overdraft

The SAFA Overdraft Facility is a liquid account with funds available same day. The aim of the SAFA Overdraft facility is to provide approved South Australian public sector agencies with a short term borrowing facility at competitive rates.

Short Term Loans

Short-term loans are suitable for agencies who wish to borrow a set amount of funds for a known period, with the rate for the entire period known up front. Interest is calculated at the quoted fixed rate for the term of the loan and is typically paid at maturity, although more frequent payments can be made if required. The early repayment of a short-term loan will be calculated at prevailing market rates and may result in a break cost or gain to the client.

Interest Only Loans

Longer-term loans can be negotiated on an interest only basis, and are suitable for agencies who wish to borrow a set amount of funds for a known period, and make interest payments during the term of the loan, with the principal amount repaid at maturity. Clients may choose how frequently they wish to pay the interest, and the loan can be negotiated as a fixed rate for the term of the loan or as a floating rate which varies according to prevailing market rates.

Credit Foncier (principal and interest) Loans

Credit foncier loans are suitable for clients who wish to borrow funds for a known period of time, and make repayments of principal and interest during the term of the loan. Clients may choose how frequently they wish to make their repayments, and the loan can be negotiated as a fixed rate for the term of the loan or as a floating rate which varies according to prevailing market rates.

Structured Loans

SAFA can structure loans to suit the individual needs of clients, using a combination of SAFA's standard loan products.

For more information, please contact a SAFA Customer Services staff member.

SAFA provides South Australian government agencies with investment opportunities.  We work with our customers to consider their investment needs and provide appropriate advice on the solutions available.

SAFA can accept deposits and offer investment solutions to clients within the South Australian public sector.

SAFA Client Services staff are available to provide advice and tailored support regarding these investment solutions, in order to fulfil our customers’ individual investment requirements.

For more information, please contact a SAFA Customer Services staff member.

SAFA assists in finding solutions for agencies to assess their foreign currency exposures and implement an appropriate strategy to manage the exposure.

The Treasurer of South Australia has issued instructions with regard to agencies managing their foreign exchange exposures (Treasurer's Instruction 23 - Management of Foreign Currency Exposures).

All public authorities as defined by the Public Finance and Audit Act 1987 are required to comply with the instruction, unless an exemption is obtained from the Treasurer.

For more information, please contact a SAFA Customer Services staff member.

SAFA staff are available to provide an advisory role to government customers across a wide range of financial management issues, including:

• Liability management
• Investment management and asset allocation
• Operating and finance leases
• Treasury accounting
• Portfolio risk reporting
• Treasury policy
• Structured financing

SAFA has participated in a number of government-wide projects requiring expertise in financial management and risk analysis.

For more information, please contact a SAFA Customer Services staff member.

SAFA offers a range of interest rate derivative solutions to assist agencies in managing their interest rate exposure. Agencies will require the Treasurer's approval before entering into derivative products.

Interest Rate Swaps

Interest rate swaps allow agencies to change the nature of their interest rate obligations by swapping them into fixed rates or floating rates with a different frequency.

Interest Rate Futures

Interest rate futures allow agencies to hedge interest rates for periods from one month to a number of years. Australian dollar interest rate futures contacts are traded on the Australian Securities Exchange (ASX).

Forward Rate Agreements (FRA)

A FRA allows agencies to hedge short-term interest rates, similar to interest rate futures. They have greater flexibility in terms of the dates that the hedge is required and the face value of the FRA.

Interest Rate Options

Interest rate options can be purchased to protect against adverse movements in interest rates. They can be tailored to protect a short period of time or a longer period of time. In exchange for the protection, the customer is required to pay an upfront premium.

For more information, please contact a SAFA Customer Services staff member.

SAFA can provide a comprehensive portfolio management solutions for customers with borrowings or investments. We can manage a portfolio in accordance with the policies approved by the customer’s management or Board.

In addition to managing the portfolio, SAFA can provide a comprehensive reporting and accounting solutions for the portfolio.

For more information, please contact a SAFA Customer Services staff member.

Leasing can provide a cost-effective solution for government agencies to acquire assets used to provide services to the public. Although leasing is a potentially valuable procurement option, it is important agencies are aware of the risks and benefits that arise when entering into lease contracts.

SAFA, in conjunction with the Department of Treasury and Finance, is developing Leasing Guidelines to assist governmental agencies in leasing decisions.

The leasing guidelines apply to government agencies contemplating procurement via a leasing arrangement where the cost of the asset or group of assets to be acquired and/or the present value of the proposed lease payments exceeds $100,000.

For more information, please contact a SAFA Customer Services staff member.

Treasury Administration Services provides financial and lending solutions to public sector agencies within the South Australian Government.

SAFA can provide a wide range of innovative and customer centric administration services relating to treasury and financial transactions, including:

• Transaction management
• Reporting
• Settlements
• Accounting

In addition to offering individual tailored services, SAFA can provide a complete treasury outsourcing financial support. SAFA can manage prudently client portfolios and associated treasury operations in line with policies approved by the client's management or Board.

For more information, please contact a SAFA Customer Services staff member.

On behalf of the Treasurer of South Australia, SAFA is responsible for administering the Government Guarantee Fees applicable to Government Guarantee Fee paying agencies. The application of guarantee fees is consistent with the competitive neutrality principles contained in the Inter-Governmental Agreement between the State and Commonwealth Governments and supports transparency and accountability by ensuring relevant decisions are made reflecting true borrowing costs.

Government Guarantee Fee rates are determined yearly based on credit margins in the Australian financial markets.  The credit margins reflect the difference in borrowing costs of the various agencies to the borrowing costs of the South Australian Government.

Government Guarantee Fee rates are payable by agencies to the Treasurer, in addition to  borrowing costs,  and reflect the advantage provided to them  by the Government’s guarantee on debt.

The applicable rates and the pricing policy are contained in the following documents.

Government Guarantee Fee Table of Rates

Government Guarantee Fee Pricing Policy