Financial Markets
Borrowings
The Corporation manages the Northern Territory's exposure to funding risk by ensuring the Northern Territory Government is not exposed to a significant refinancing risk in any financial year.
The Corporation'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 the Corporation's requirements.
Private Placements and Public Issues
Private placements are used by the Corporation to satisfy specific funding needs. This is an alternative to the main semi-government bond market, which is made up of large issues of homogenous debt issued by the central financing authorities of each state.
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.
In recent years the Corporation has developed a major class of bond issues across a number of years that have been between $300 million and $350 million on issue. These issues have been established to meet investor demand for greater liquidity and to promote market awareness.
The Corporation currently has five institutional bond issues:
| Maturity Date | Coupon | Amount on issue |
| 15 September 2010 | 5.75% | A$305.0 million |
| 15 November 2011 | 6.00% | A$325.0 million |
| 15 September 2012 | 6.25% | A$300.0 million |
| 15 October 2013 | 6.75% | A$301.0 million |
| 14 July 2014 | 5.75% | A$350.0 million |
Promissory Notes
The Corporation's short-term funding requirements are met through its promissory note facility. The notes are issued by way of tender, using ASX (Austraclear Services Limited) as the issuing, lodging, recording and paying agent.
Territory Bonds
Territory Bonds is the Corporation'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 2009, total outstanding Territory Bonds on issue was approximately $170 million.
Debt Profile
NTTCorp borrows funds from the domestic and international financial markets by offering a range of financial products. The funds raised by the Corporation assist to finance the Northern Territory’s infrastructure requirements such as housing, transport, health and education services.
As at 30 June 2009, NTTCorp's total outstanding debt was A$2.055 billion of domestic debt. Total Borrowing in 2008-09 (190kb pdf file) was A$295 million.
Credit Rating
The Corporation is rated Aa1 by Moody's Investor Services.
The Corporation's credit rating has a 'stable' rating outlook based on the ongoing support by the Commonwealth and Government policies designed to improve the Territory's fiscal and debt position.
Government Guarantee
All obligations incurred or assumed by the Northern Territory Treasury Corporation are guaranteed by the Treasurer on behalf of the Northern Territory under section 20 of the Northern Territory Treasury Corporation Act.