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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-08-30 Daily Xml
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South Australian Government Financing Authority

In reply to Mr COWDREY (Colton) (29 June 2023). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer): I have been advised the following:

1. SAFA has $9.93 billion of debt maturing in the next four years. A current four year SAFA bond rate is 4.14 per cent. SAFA has $20.82 billion of debt maturing in the next eight years. A current eight year SAFA bond rate is 4.45 per cent. SAFA has $24.13 billion of debt maturing in the next 10 years. A current ten year SAFA bond rate is 4.68 per cent.

2. SAFA has $3.7 billion of investments maturing in the next five years. There are a range of government, semi-government and highly rated bank debt securities SAFA has purchased over a period of time for balance sheet risk management. These securities have been purchased over a period of time and are marked-to-market on a daily basis.

3. Domestic and overseas travel was undertaken by SAFA executives in the previous 12 months. SAFA does not have an investing team.

4. Details of that travel are provided below:

Over the course of 2022-23, officers from SAFA's treasury team travelled to Melbourne, Sydney and Brisbane on numerous occasions to meet with life and insurance companies, fund and investment managers, sub-sovereign wealth funds, hedge funds, SAFA's dealer panel banks and other financial institutions and intermediaries including the RBA, ASIC, AFMA, the ASX and credit ratings agencies.

Officers from SAFA's treasury team also attended and presented at various relevant industry forums such as the annual KangaNews Debt Capital Conference and investor conferences hosted by its dealer panel banks. SAFA relies on this regular engagement with the domestic investor base to successfully distribute its bonds. Australian-based investors own approximately 70 per cent of SAFA debt on issue. In August and September 2022, officers from SAFA's insurance team travelled as part of the renewal of the state's catastrophe reinsurance program. As per the Premier and Cabinet Circular 'PC 035 – Proactive disclosure of regularly requested information' details of all public sector employees' overseas travel is proactivity disclosed.

5. SAFA has not undertaken any detailed modelling of the potential impacts on borrowing costs as a result of a downgrade in the state's credit rating.

6. SAFA's actual FTE headcount on 29 June 2023 was 82.3.

7. There were 7.5 FTE vacancies within SAFA at 29 June 2023. Of those vacancies:

One had been filled, with the applicant commencing with SAFA on 12 July 2023; and

Four were being actively recruited.

In addition, SAFA had three short-term agency staff performing services. It is envisaged that over the course of the 2023-24 financial year, agency staff will be replaced by FTEs following the relevant recruitment processes.

8. SAFA achieved its savings task for the 2021-22 financial year.

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