QTC’s primary responsibility is to provide long-term access to competitively priced funds. In 2006–07 we continued to strengthen our relationships with our Distribution Group members and investors to ensure that Queensland has on-going access to the funds required to secure its growth and prosperity. Acknowledging the importance of these relationships, our key funding principles demonstrate our commitment to our investors and partners in financial markets.

KEY FUNDING PRINCIPLES

Transparency
QTC recognises the importance of providing the market with the information it needs to price our bonds as efficiently as possible. Throughout the year, we continued to regularly meet with our current and prospective investors, and financial markets’ participants around the world. We strive to be open and transparent in our communication with our investors and Distribution Group members about our funding requirements and proposed funding sources, and seek market feedback wherever possible.

Longevity
For almost two decades, QTC’s benchmark bonds have remained our principal source of funds, with domestic and global tranches on issue in each benchmark line. We remain committed to ensuring that a minimum of A$2 billion is on issue in each benchmark line, with a current average of A$4 billion on issue in most lines. To complement our regular benchmark bond issuance, we also consider alternate funding sources based on investor demand and diversification opportunities. QTC’s access to competitively priced funds across a diverse range of facilities is one of the key factors underpinning our AAA/Aaa credit rating.

Conservative
Maintaining the highest possible credit quality is a key funding principle underpinning all of QTC’s financial markets activities. QTC’s AAA/Aaa credit rating is underpinned by the following criteria:

• the explicit guarantee on all QTC bonds provided by the State of Queensland
• our significant holding of liquid, financial assets, and
• our conservative risk management practices.