Borrowing and financing strategies

Financial Markets


NTTC manages the Territory Government's exposure to funding risk by ensuring the Territory Government is not subject to a significant refinancing risk in any financial year.

NTTC's approach to minimising funding risk involves the diversification of borrowing and investment activities across the maturity spectrum and utilising a variety of funding sources to meet its requirements.

Wholesale Public Issues

The primary source of funding for NTTC is Australian dollar denominated bonds issued in the wholesale market via syndication. In executing its borrowing program, NTTC’s strategy is to issue larger benchmark bond lines with a minimum balance of $500 million to meet investor demand for greater liquidity and to promote market awareness.

In 2020-21, NTTC has continued to focus on extending the duration of the bond curve by issuing a new May 2032 bond series and adding to the total amount on issue in the April 2033 and November 2042 bond series.

NTTC currently has 12 benchmark bond issues:

Maturity Date​Coupon​Amount on issue
​21 November 2022 ​2.50% ​A$600 million​
​15 March 2024 6.00%​ A$650 million​
​21 October 2024 ​2.75% ​A$500 million
15 March 2026​ 6.00%​ A$650 million​​
21 April 20272.75%A$600 million
​21 April 2028 ​3.50% ​A$750 million
21 May 20292.00%A$600 million
21 May 2030 3.50% A$750 million
21 April 20312.00%A$750 million
21 May 20322.50%A$650 million
​21 April 2033 3.75% A$750 million
​21 November 2042 ​4.10% ​A$650 million

Private Placements

In addition to issuing benchmark bonds, private placements are used by NTTC to satisfy specific funding needs. Private placements are attractive because of the ease of issuance, which makes them suitable for small parcels of debt and their flexibility for tailoring to domestic market movements and investor demand.

Promissory Notes

NTTC's short-term funding requirements are met through its promissory note facility. The notes are issued by way of tender to key institutional counterparties, using ASX (Austraclear Services Limited) as the issuing, lodging, recording and paying agent.

While NTTC had no promissory notes on issue as at 30 June 2021, the promissory note facility remains available to use during the year to meet short-term funding requirements.

Territory Bonds

Territory Bonds is NTTC's retail fixed interest borrowing product and is used to attract funds from the general public. Territory Bonds have been issued since 1979 and are offered to investors seeking a safe, secure, government-guaranteed investment.

As at 30 June 2021, total outstanding Territory Bonds on issue was about $818 million, an increase of $636 million compared to 30 June 2020.

Territory Bonds graph 2020-21

Debt Profile

NTTC borrows funds from the domestic and international financial markets by offering a range of financial products. The funds raised by NTTC assist to finance the Territory’s infrastructure requirements such as housing, transport, health and education services.

As at 30 June 2021, NTTC’s total outstanding domestic debt was about A$9.5 billion. Total borrowings in 2020-21 was about A$2 billion, which included $870 million of prefunding for 2021-22.

Credit Rating

NTTC is rated Aa3 by Moody’s Investors Service with a stable outlook.

Government Guarantee

All obligations incurred or assumed by NTTC are guaranteed by the Treasurer on behalf of the Territory under section 20 of the Northern Territory Treasury Corporation Act 1994.

Interest Withholding Tax on NTTC Domestic Bonds

On 9 December 2008, amendments to s.128F of the Income Tax Assessment Act 1936 came into effect to allow bonds issued in Australia by state and territory central borrowing authorities to be eligible for exemption from interest withholding tax (IWT).

The amendments apply to interest/coupon payments made on or after 9 December 2008, which means all domestic bonds, whether issued before or after that date, are eligible. The amendments do not necessarily exempt all bonds currently on issue, rather only those securities that otherwise meet the requirements of s.128F, specifically the public offer test.

In order to assist Australian custodians and paying agents holding bonds on behalf of offshore counterparties, NTTC wishes to make the following clarifications.

NTTC Domestic Bonds which qualify under s.128F

NTTC considers the following select lines of stock satisfy the relevant requirements of s.128F and are therefore exempt from IWT:

Maturity DateCouponCoupon DatesAustraclear
Series ID
ISIN Number
​21 November 2022​ ​2.50% ​21 May and 21 November ​NT2771 ​AU3SG0001712
​15 March 2024 6.00%​ 15 September and 15 March​ NT2743​ AU000NT27436​
​21 October 2024 ​2.75% ​21 April and 21 October ​NT2770 ​AU3SG0001597
15 March 2026​​ 6.00%​ 15 September and 15 Mar​​ch NT2741​ AU000NT27410​​
21 April 20272.75%21 October and 21 AprilNT2776AU3SG0001886
​21 April 2028 ​3.50% ​21 October and 21 April ​NT2772 ​AU3SG0001738
21 May 2029​2.00%21 November and 21 MayNT2777AU3SG0001951
21 May 2030 3.50% 21 November and 21 May NT2775 AU3SG0001845
21 April 20312.00%21 April and 21 OctoberNT2778AU3SG0002074
21 May 20322.50%21 May and 21 NovemberNT2779AU3SG0002470
21 April 2033 3.75% 21 October and 21 April NT2774 AU3SG0001795
21 March 20412.75%21 March and 21 SeptemberNT2781AU3SG0002587
​21 November 2042 ​4.10% ​21 May and 21 November ​NT2773 ​AU3SG0001746
21 March 20513.00%21 September and 21 MarchNT2780AU3SG0002538

Other NTTC Domestic Bonds

NTTC has a number of smaller issues of domestic bonds outstanding that are not part of its domestic select lines of stock. NTTC cannot at this stage make any definitive statements regarding eligibility of these securities for the IWT exemption. Any domestic custodians holding such stock on behalf of offshore parties should contact NTTC on a case-by-case basis to clarify IWT status of these securities.

Last updated: 08 November 2021

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