Financial Markets

Weekly Funding Update
SAFA 2021-22 Post MYBR Indicative Funding Program
South Australia's Post Budget Investor Update
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Domestic AUD Information Memorandum

This Information Memorandum relates to an Australian Dollar medium term bond programme established by SAFA under which medium term bonds denominated in Australian dollars may be issued by the Issuer from time to time.

The Bonds will be issued with the benefit of a guarantee from the Treasurer of the State of South Australia pursuant to Section 15(1) of the Government Financing Authority Act 1982 (SA).

For more information see:

Domestic AUD Information Memorandum 2020

Domestic AUD Information Memorandum 2015

Please find the AUD Commercial Paper Information Memorandum here (372KB PDF)

FY 2021-22 Long-Term Bond Issuance - Completed.

Month	Coupon	Maturity	Volume $'m	Method
Jul-21	2.00%	24 May 2036	1,000	Syndicated Placement
Oct-21	3.00%	20 July 2026	500	Syndicated Placement
Nov-21	2.25%	24 May 2040	15	Private Placement
Dec-21	2.75%	24 May 2030	250	Yieldbroker Tender
Dec-21	AONIA FRN	10 June 2025	250	Public Tap
Dec-21	AONIA FRN	16 June 2023	50	Private Placement
Dec-21	AONIA FRN	16 June 2023	200	Tap
Jan-22	1.75%	24 May 2034	250	Yieldbroker Tender
Feb-22	1.75%	24 May 2034	750	Syndicated Placement
Feb-22	2.25%	24 May 2040	30	Private Placement
Mar-22	AONIA FRN	10 June 2025	400	Public Tap
April-22	2.75%	24 May 2030	300	Yieldbroker Tender
April-22	AONIA FRN	10 June 2025	100	Tap
Total			4,095

Fixed and Floating Rate Term Outstandings as at

29 APRIL 2022

Coupon %	Maturity Date	Outstanding $'m	Change $’m
1.50	22 September 2022	2,062	Nil
AONIA FRN	16 June 2023	1,511	Nil
4.25	20 November 2023	1,520	Nil
2.25	15 August 2024	3,128	Nil
2.75	16 April 2025	1,250	Nil
AONIA FRN	10 June 2025	750	+100
3.00	20 July 2026	3,540	Nil
3.00	20 September 2027	1,500	Nil
3.00	24 May 2028	3,040	Nil
2.75	24 May 2030	2,815	+300
1.75	24 May 2032	2,560	Nil
1.75	24 May 2034	2,000	Nil
2.00	23 May 2036	1,000	Nil
2.25	24 May 2040	998	Nil
Total		27,673.60	+400

SAFA Turnover (raw data; excludes primary issurance, repo/stock borrowing)

	Turnover $'m	Investor %	Outstandings $'m
2022 - Q1	5,407	68%	27,674
2021 - Actual	24,773	74%	25,844
2020 - Actual	20,125	71%	24,027
2019 - Actual	15,399	76%	18,315

For further information on these SAFA services, please contact Andrew Kennedy, Director, Treasury Services, telephone 08 8226 9840.

Short Term Funding

Outstandings as at 29 April 2022

Promissory Notes ($m)	2,485
AONIA FRN ($m)	500
Total Short Term Issuance inc. ECP ($m)	2,985

SAFA Inscribed Stock Dealer Panel

Australia and New Zealand Banking Group Limited
Barrenjoey Markets Pty Limited
Citigroup Global Markets Australia Limited
Commonwealth Bank of Australia
Deutsche Bank AG, Sydney Branch
J.P. Morgan Securities Australia Limited
Merrill Lynch (Australia) Futures Limited
National Australia Bank Limited
Nomura International plc
RBC Capital Markets
The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Toronto-Dominion (South East Asia) Limited
UBS AG, Australia Branch
Westpac Banking Corporation

For all enquiries regarding pricing supplements or historical term sheets, please contact Andrew Kennedy (andrew.kennedy2@sa.gov.au) or 08 8429 0416.

Euro Commercial Paper Program Panel

Barclays
BofA Securities
Citigroup Global Markets Limited
Commonwealth Bank of Australia
ING
National Australia Bank Limited, Hong Kong Branch
RBC Capital Markets
The Toronto-Dominion Bank, London Branch
UBS Investment Bank

Euro Commercial Paper

Outstandings as at 29 April 2022

Currency	Outstanding ($m)
AUD	0
USD	0
EUR	0

Euro Commercial Information Paper

On 4 June 2019 SAFA launched a new transaction for a 1 year AONIA Linked FRN with UBS as the Arranger and Sole Lead Manager, and IHS Markit as the Calculation Agent.

The Term Sheet for the issue can be found here. (115KB PDF)

History

First issuance - On 4 June 2019 SAFA launched a new transaction for a 1 year AONIA Linked FRN with UBS as the Arranger and Sole Lead Manager, and IHS Markit as the Calculation Agent.

Second issuance - On 16 December 2019 SAFA accessed primary markets for another 1yr AONIA transaction.

Third issuance - Between 30 March and 2 April SAFA accessed primary markets for a 3^rd 1yr AONIA transaction.

As of 31 December 2021 SAFA have issued over $4 billion of AONIA linked FRNs.

Market Consultation

SAFA, in conjunction with IHS Markit and UBS, conducted a series of market consultations regarding the proposed methodology.

Information regarding the coupon calculation methodology and product conventions can be found here. (1.33MB PDF)

An example of market pricing model can be found here. (269KB XLS)

On 2 April 2019, Standard & Poor's published an article “AONIA As An Alternative to One-Month BBSW In Australian Structured Finance Transactions” (119KB PDF) where they recommended using AONIA as an alternative interest rate benchmark.

On 19 March 2019, the Reserve Bank of Australia (RBA) made specific remarks regarding their expectation of some corresponding migration away from BBSW towards the cash rate, particularly for products or issuers where it made sense to reference a risk-free rate instead of a credit-based benchmark. SAFA’s intentions were in particular noted in this regard.

For further information please contact SAFA’s Director Treasury Services, Andrew Kennedy: andrew.kennedy2@sa.gov.au.