News

The FTA is seeking candidates for a part-time CEO role

The FTA has re-established itself as a premier provider of professional development training and networking forums to finance & treasury professionals.

The association is now financially secure and has accumulated a healthy financial reserve based on the outsourced agreement with CommStrat which provides membership management, financial reporting, professional development, marketing & communications, Congress and other administration matters however it is Directors' view is there is an opportunity to undertake greater policy/advocacy initiatives and higher-level strategic matters to take the Association to the next level. These initiatives include:

• Driving an increased presence with regulators and policy setters;
• Leading policy and advocacy initiatives on behalf of the profession;
• Developing a higher profile within the larger corporate members; and
• Driving ways to meet member expectations.

A summary of the position and desired characteristics can be viewed at FTA Jobs.

Interested parties should forward a cover letter and curriculum vitae to info@fta.asn.au by COB Friday 20 January 2012.

For inquiries, please contact FTA President Paul Travers FFTP on Mb 0414 940 057.

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Register for the 2012 FTA Capital Markets Update forums - Australia-wide

FTA’s annual Capital Markets Update forums attract in excess of 300 senior treasury and finance executives Australia-wide each year. The forums held at the start of each calendar year provide valuable updates and information on the latest insights and trends of domestic markets and offshore markets.

Topics for 2012 include:

• Regional Loan markets
• US144a/Public Bond Markets and US PP market
• The changing mindset of the Australian retail investor and how to access this significant pool of funds
• Funding alternatives - Retail Notes, Hybrids and Convertibles.
• Equity Derivative Solutions

Locations and dates for the 2012 FTA Capital Markets Forums are as follows.

• Melbourne, Tuesday 7 February, 8.30am-12.30pm
• Sydney, Thursday 9 February, 8.30am-12.30pm
• Brisbane, Monday 13 February, 10.00am-1.00pm
• Adelaide, Wednesday 15 February, 10.00am-1.00pm
• Perth, Friday 17 February, 10.00am-1.00pm

Confirmed senior finance & treasury professionals confirmed to present include:

• Asrar Rahman FFTP, Group Treasurer, Woolworths Ltd
• Alistair McLean CFTP, Group Treasurer, Metcash
• Vincent Chin, Head of Treasury, Goodman Group
• Ben McCormick, Treasurer, Newcrest Mining
• Gary Carroll, Chief Financial Officer, Super Retail Group
• John Gallagher CFTP, Treasurer, Santos
• Andrew Bishop CFTP, Chief Financial Officer, Australian Rail Track Corporation (ARTC)
• Ian Wells, Group Manager Funding, Fortescue Metals Group Ltd

The FTA wishes to acknowledge the support of its 2012 Capital Markets Update Partners

For further information and to register on-line please visit www.finance-treasury.com

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FTA member input required for Federal Government Discussion Paper - Development of the Retail Corporate Bond Market

On 13 December 2011, the Deputy Prime Minister and Treasurer released a discussion paper regarding proposals aimed at developing the Australian retail corporate bond market by streamlining disclosure and liability requirements under the Corporations Act 2001.

The paper invites discussion on the proposition that the retail corporate bond disclosure and liability regime should facilitate a sustainable corporate bond market by:

• Reducing the regulatory burden on/barriers to issuance facing potential issuers while maintaining appropriate investor protection;
• Ensuring that investors are made aware of the key features and risks associated with buying a particular bond from a particular company (noting that bonds will be made available to both existing and new investors in the company), while reducing the complexity of prospectuses and making them easier for investors to understand; and
• Ensuring that there is an appropriate liability regime in place which balances investor protection against ensuring that directors are not unduly burdened.

The full paper can be viewed here.

The FTA is preparing a submission to the discussion paper on behalf of members. Members can forward their feedback via the FTA Secretariat office via email naomi.braham@fta.asn.au or phone +61 3 8534-5060.

The deadline for comments/submissions on the discussion paper is Friday 10 February 2012. Please provide you comments by Friday 3 February 2012.

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SABMiller plans biggest bond sale in U.S. in two years after Foster's deal

Bloomberg (11 Jan.) SABMiller Plc (SAB) the world’s second- biggest brewer by volume, issued $7 billion of debt in the largest U.S. bond sale since 2010 as it seeks to pay back debt tied to last year’s acquisition of Foster’s Group Ltd.

The company sold $1 billion of three-year notes, $2 billion of five-year notes, $2.5 billion of 10-year notes and $1.5 billion of 30-year bonds, according to data compiled by Bloomberg. London-based SABMiller last tapped the U.S. bond market in July 2008, when it issued $1.25 billion of bonds. At least $12.4 billion of corporate debt was sold or set to be offered today in dollars, the data show.

SABMiller’s purchase of the Australian Foster’s, valued at A$12.4 billion ($12.8 billion) and completed last month, is the biggest takeover of a brewer since InBev NV purchased Anheuser- Busch Cos. for $52 billion in 2008 to create No. 1 brewer Anheuser-Busch InBev NV. SABMiller had to sell bonds to refinance an $8 billion bridge loan used for the acquisition, CreditSights Inc. said in a Dec. 19 report. The purchase included $1.93 billion of net debt, Bloomberg data show.

SABMiller’s 1.85 percent, three-year notes yield 150 basis points more than similar-maturity Treasuries, the 2.45 percent, five-year debt paid a spread of 165 basis points, the 3.75 percent, 10-year notes yield 185 basis points more than similar- maturity Treasuries and the 4.95 percent, 30-year bonds pay 200 basis points more than benchmarks, Bloomberg data show. The 1.85 percent coupon was the lowest on record for the company, the data show.

To view full Bloomberg article

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S & P: Should 'AAA' be the only way for Structured Finance?

Standard & Poor's (12 Jan.) Investors in structured finance securities remain highly focused on 'AAA' ratings—and consequently, so do issuers. But with banking system and sovereign risks recently increasing, 'AAA' ratings are becoming more difficult to achieve. In our view, market participants also tend to pay too little attention to what a 'AAA' rating for a given security actually means, based on the analysis behind it. In particular, a security that one rating agency labels 'AAA' may not achieve the highest rating from another agency. This is because definitions and methodologies can vary significantly from one rating agency to the next.

This raises several questions: Is the focus on 'AAA' ratings in the best interests of investors and issuers? Could a larger market develop for securities with a broader range of credit risk profiles? Should investors always view 'AAA' ratings from different rating agencies as comparable, or might they benefit from greater diversity of rating opinions?

To view full article

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FTA Members' discount to UK ACT on-line training courses

The FTA has entered into an agreement with the UK Association of Corporate Treasurers (ACT) to offer the Certificate of International Treasury Management qualification to members at a 10% discount.

The course delivers core knowledge, technical and practical skills to provide a fundamental understanding of all aspects of corporate financial management on-line.

The course is a six month course of 150 hours of study which is assessed by a comprehensive multiple choice examination. The course is delivered on-line, providing learning resources, a study guide and an on-line communication facility.

“CertITM provides a good grounding in treasury fundamentals and is an excellent foundation for your career - wherever you want to take it.” Morven Fulton, Manager, Risk & Controls Solutions, PwC Australia

Enrolment deadlines:

15 March for October examination

15 September for April examination

Cost

1,000 Pounds + VAT

FTA Members are entitled to a 10% discount off the cost of this course.

For further information and to download the brochure

For further information or enrolment details please contact info@fta.asn.au or call the FTA Head office on + 613 8534-5060.

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US Treasury auction draws record demand at $US32 billion three-year note sale

Bloomberg (11 Jan.) The US Treasury (YCGT0025) attracted record demand at today’s $32 billion auction of three-year notes as concern that a resolution to Europe's sovereign-debt crisis is far off drove investors to the safety of the securities.

The auction’s bid-to-cover ratio, which gauges demand by comparing total bids with the amount of notes offered, was 3.73, the highest since at least 1993, when the government began releasing the data. Yields on U.S. debt securities were little changed. German Chancellor Angela Merkel was meeting International Monetary Fund Managing Director Christine Lagarde as pressure grows to complete a Greek debt resolution.

“There is still strong risk aversion in the market,” said Adrian Miller, fixed-income strategist at Miller Tabak Roberts Securities LLC in New York. “There is still enough headline risk out there that it should keep the Treasury market relatively in check and in this very narrow range.”

The yield on the current three-year note was little changed at 0.36 percent at 5 p.m. in New York, according to Bloomberg Bond Trader Prices. The yield on the benchmark 10-year note rose one basis point, or 0.01 percentage point, to 1.97 percent.

The three-year notes sold today drew a yield of 0.37 percent, compared with a forecast of 0.371 percent in a Bloomberg News survey of nine of the Federal Reserve’s 21 primary dealers.

Indirect bidders, an investor class that includes foreign central banks, purchased 38.5 percent of the notes, compared with an average of 37 percent for the past 10 sales. Direct bidders, non-primary-dealer investors that place their bids directly with the Treasury, purchased 5.3 percent of the notes at the sale, versus an average of 11.86 percent for the past 10 auctions.

To vie full Bloomberg article.

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The Guide to Financial Risk Management

FTA Members are entitled to a 20% discount off this publication.

OVERVIEW

Endorsed by the FTA (Finance and Treasury Association), this practical guide to key aspects of risk management helps you learn essential strategies for identifying and managing financial risk.

The Guide to Financial Risk Management clarifies how instruments work together to manage risk and puts Australian markets in perspective with world markets.

It is written exclusively for the Australian corporate and business market by an experienced corporate treasurer.

You will always be up-to-date with the latest developments and techniques with two updates every year.

BENEFITS

• Authoritative guidance from a specialist in the field
• Create strategies to identify and manage risks to your organisation, now and in the future
• Train your staff in financial risk management practice in one succinct resource
• Puts prices and movements into perspective
• Assists accountants, lawyers and auditors to understand complex derivatives

KEY ISSUES COVERED

• All major financial instruments traded in Australia
• Updates from the Australian Securities Exchange
• Current market data supplied from AFMA
• Credit risk: counterparty, settlement and sector risk.
• Operational risk: system risk.
• Procedural risk: human error and fraud, education and hiring.

Interested members should contact the FTA membership officer Naomi Braham at the National Office +61 3 8534-5060 naomibraham@fta.asn.au for the FTA Member promotional code.

To download a brochure and to order

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Conferences & Forums

2012 FTA Capital Markets Update forums - Australia-wide

FTA’s annual Capital Markets Update forums attract in excess of 300 senior treasury and finance executives Australia-wide each year. The forums held at the start of each calendar year provide valuable updates and information on the latest insights and trends of domestic markets and offshore markets.

Topics for 2012 include:

• Regional Loan markets
• US144a/Public Bond Markets and US PP market
• The changing mindset of the Australian retail investor and how to access this significant pool of funds
• Funding alternatives - Retail Notes, Hybrids and Convertibles.
• Equity Derivative Solutions

Locations and dates for the 2012 FTA Capital Markets Forums are as follows.

• Melbourne, Tuesday 7 February, 8.30am-12.30pm
• Sydney, Thursday 9 February, 8.30am-12.30pm
• Brisbane, Monday 13 February, 10.00am-1.00pm
• Adelaide, Wednesday 15 February, 10.00am-1.00pm
• Perth, Friday 17 February, 10.00am-1.00pm

For further details and to register on-line visit www.finance-treasury.com

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Cloud Computing Forum 2012

Cloud computing is becoming an intrinsic component of the financial management of financial institutions both in Australia and globally. The Cloud Computing Forum 2012, to be held on February 22^nd and 23^rd at the Hotel Realm in Canberra, will feature presentations from executive level speakers from the financial sector including:

· Tim Whiteley, Executive General Manager, Enterprise Service Development, Development, Commonwealth Bank of Australia

· Theo Nassiokas, Head of Information Security & Technology Risk, Asia Pacific, Europe & America, ANZ Bank, Singapore

· Carl Michael, Head of Enterprise Architecture, Australian Unity, Business Technology

For more information about the Cloud Computing Forum 2012, please visit www.cloudforum.com.au or contact the Registration Manager by email at registration@commstrat.com.au or by phone on (03) 8534 5050.

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The 25th Silver Jubilee 2012 FTA Congress to be held in Melbourne

Following the success of the 24th annual FTA Congress "Embracing the Volatility Wave - Treasury's vital role" held in Sydney 18-20 October 2011, the FTA Secretariat has received many inquiries regarding details for the 2012 FTA Congress.

We are pleased to announce that the 25th Silver Jubilee 2012 FTA Congress will be held in Melbourne on Thursday and Friday 1st and 2nd of November with a welcome reception on the evening of Wednesday 31 October.

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