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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 Term Bond Issuance - Completed.

Month	Coupon	Maturity	Volume $'m
July 2021	2.00%	24 May 2036	1,000	Syndicated Placement
October 2021	3.00%	20 July 2026	500	Syndicated Placement
Total			1,500

Fixed and Floating Rate Term Outstandings as at

31 October 2021

Coupon %	Maturity Date	Outstanding $'m	Change $’m	RBA QE Current*	RBA Total Holdings**	Percent of Outstanding
1.50	22/09/2022	2,061.98	-36.15		85.00	4.1%
AONIA FRN	16/06/2023	1,260.50	Nil
4.25	20/11/2023	1,520.00	Nil		5.00	0.3%
2.25	15/08/2024	3,128.00	Nil	95.00	152.00	4.9%
2.75	16/04/2025	1,250.00	Nil	298.00	333.00	26.6%
3.00	20/07/2026	3,540.00	+500	758.00	812.00	22.9%
3.00	20/09/2027	1,500.00	Nil	318.00	524.00	34.9%
3.00	24/05/2028	3,040.00	Nil	795.00	1,013.00	33.3%
2.75	24/05/2030	2,265.00	Nil	471.00	647.00	28.6%
1.75	24/05/2032	2,560.00	Nil	509.00	474.00	18.5%
1.75	24/05/2034	1,000.00	Nil
2.00	23/05/2036	1,000.00	Nil
2.25	24/05/2040	958.10	+5
Total		25,083.58	468.86	3,244.00	4,045.00	16.1%

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

	Turnover $'m	Investor %	Outstandings $'m
2021 - September	2,015	77%	24,615
2021 - August	2,154	62%	24,615
2021 - July	4,717	77%	24,615
2021 - Q2	4,692	71%	23,812
2021 - Q1	4,859	76%	25,009
2021 - Actual	18,437	73%
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 31 October 2021

Promissory Notes ($m)	1,500
AONIA FRN ($m)	950
Total Short Term Issuance inc. ECP ($m)	2,450

SAFA Inscribed Stock Dealer Panel

Australia and New Zealand Banking Group 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
The Toronto-Dominion Bank
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 8226 9840.

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 31 October 2021

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 – text

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

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.