Now Ausgrid has been leased, it has repaid $9.5 billion of loans formerly provided by TCorp. As such TCorp’s funding requirement for 2016/2017 has just been substantially reduced. In June, it estimated it would require $7.1 billion to cover maturing bonds and other shortfalls of the NSW Government. This figures has now been reduced to $4.0 billion, with the balance of the $9.5 billion used to repay the NSW Government $4 billion while $2 billion less is borrowed in the short term market.
While TCorp will not be conducting any more buybacks of ordinary bonds, it did say it would seek to repurchase about $150 million 2020 index-linked bonds. It has also made it known it wishes to lengthen the duration of the bonds it has outstanding and is thus open to reverse enquiries.
TCorp’s next funding update will be in mid-December.
