The primary objective is to secure the government’s funding at all times and at the lowest possible cost over the long term while avoiding excessive risk. The planning horizon covers multiple budget periods. As the treasury of the Republic of Austria, the AFFA follows a conservative debt policy that is based on the following cornerstones:
- Diversity of refinancing sources
The treasury of the Republic of Austria uses a wide range of instruments and issue programmes, including bond auctions, syndicated facilities, private placements, loans, debt certificates, treasury bills and bundesschatz.at. This ensures a high degree of flexibility with regards to market access while addressing different investor groups.
- Broadly diversified redemption profile
The maturities of the individual commitments range from one day to a maximum of 50 years. The maturities are managed to prevent a significant concentration of refinancing risks within a short period whenever possible.
- Maintenance of a liquid benchmark curve
Austrian government bonds have a benchmark function for various financing rates on the domestic market. All measures are undertaken to facilitate the liquidity of the market as best as possible.
- Transparent information policy
The Republic of Austria has been a credible and reliable AAA issuer on the international capital market for decades. Information about the auction calendar, current debt levels and economic developments is updated on an ongoing basis and made easily available to all market participants.
- Broad investor base
A primary trader group consisting of 23 national and international institutions assists the Republic of Austria in ensuring efficient access to the market. Continuous investor relations activities such as roadshows and investor meetings reflect the importance of a well diversified investor base focusing on the Eurozone.
Find more information on the funding outlook of the Republic of Austria for 2012 here.