European market recognises Queensland is open for business
- The Crisafulli Government returns Queensland to prominence as an attractive place to invest.
- In an Australian-first, Queensland becomes the first State to issue a euro currency benchmark bond.
- Significant interest shown in the landmark deal.
- Accessing new global markets diversifies Queensland's funding base.
The Crisafulli Government has restored Queensland's position as a place to invest by being the first State 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 (~AUD 2.15 billion) benchmark bond, receiving significant demand with orders more than seven times the issuance amount.
The landmark deal was a topic of discussion during a meeting with State and Territory Treasurers last Friday (23 May).
Treasurer David Janetzki said with global uncertainty at an all-time high, the Crisafulli Government had re-established Queensland as a low-risk investment option.
"The broad-based interest in the deal demonstrates the European market recognises we are open for business and it underscores the global appeal of the State's financial stability and long-term growth prospects," Mr Janetzki said.
"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."
QTC's Acting CEO Susan Buckley highlighted 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," Ms Buckley said.
"Foreign currency issuance aims to attract new investors and potentially allows QTC to tap into different pools of money of existing investors."
Ms Buckley said the transaction followed positive feedback and interest received during a QTC roadshow with investors in the UK and Europe earlier this year.
