Western Australia To Borrow More Than $10 Billion In 2017-18

Western Australia To Borrow More Than $10 Billion In 2017-18

Western Australia Treasurer Ben Wyatt

Investor Briefings To Support Borrowing Program

Victor P Taffa

  • Briefings between the State and numerous investors commence April 24
  • The offshore market has become increasingly important for the State’s borrowings

Treasurer Ben Wyatt will visit Sydney and north Asia next week to meet a number of potential and current investors to discuss the State’s prospective borrowing program.

Treasurer Wyatt said proactively engaging with investors was essential to support the State’s Budget.

Under Treasurer Michael Barnes revealed earlier this month that Western Australia would need to undertake a borrowing program in excess of $10 Billion in 2017-18. The scale of this borrowing program would require a more diversified investor base.

Briefings will focus on the Government’s commitment to Budget repair and the longer term economic outlook for Western Australia.

Australian banks have traditionally supported the majority of WA’s borrowing activities, but the size of the State’s debt means overseas investors are increasingly important.

Treasurer Wyatt will brief 80-90 current and potential investors in Sydney, Tokyo and Hong Kong from April 24 to 29. Treasurer Wyatt will be accompanied by Mr. Barnes, Western Australian Treasury Corporation Chief Executive Officer John Collins and the Treasurer’s Chief of Staff Roger Martin.

Western Australia has traditionally had 20 to 25 % of its debt held by offshore investors compared to an estimated 40 % by some other States. The Australian Office of Financial Management, responsible for the Commonwealth’s debt management activities, has more than a 60 % share abroad.