The Queensland Government is spruiking it restored the state’s position as a place to invest by being the first to issue a euro-denominated benchmark bond.
This month, the state’s central financing authority, Queensland Treasury Corporation (QTC) issued a new EUR 1.25 billion ($2.15 billion) benchmark bond, receiving significant demand with orders more than seven times the issuance amount.
The deal was a topic of discussion during a meeting with state and territory treasurers on 23 May.
QTC’s acting CEO Susan Buckley highlights the strategic importance of the deal.
“Issuing in non-Australian dollars has been an important evolution in QTC’s long term funding strategy and is aligned with our strategic goal to diversify and expand our investor base,” Buckley says.
“Foreign currency issuance aims to attract new investors and potentially allows QTC to tap into different pools of money of existing investors.”
Buckley says the transaction followed positive feedback and interest received during a QTC roadshow with investors in the UK and Europe earlier this year.
Treasurer David Janetzki says with global uncertainty continuing, the government had re-established Queensland as a low-risk investment option.
Janetzki says the broad-based interest in the deal demonstrates the European market recognises Queensland is open for business and it underscores the global appeal of the state’s financial stability and long-term growth prospects.
“A diversified and well-managed long-term funding program ensures we can continue to invest in vital infrastructure and services including the Olympics, drive economic growth and improve the quality of life for all Queenslanders,” the Treasurer adds.
Write to Adam Orlando at Mining.com.au
Images: Stock
