News

Over 30 Corporate Treasury professionals to present at 2010 FTA Congress

27-29 October, Crown Promenade, Melbourne

Leading Australian company directors Linda Nicholls AO, Mark Johnson AO and Michael Traill AM, are confirmed to present keynote addresses at the 23rd annual Finance and Treasury Association Congress to be held in Melbourne from the evening of Wednesday 27 October to the afternoon of Friday 29 October.

Linda, Mark and Michael will be joined by an excellent line-up of corporate treasury professionals that include:

• Ryan Abbott CFTP, Group Treasurer, Crane Group
• John Arentz CFTP, Treasurer, Australand
• Jennifer Baker CFTP, Treasurer, AGL
• Nell Bingham CFTP, Company Treasurer, Aurora Energy
• Craig Busch CFTP, Group Treasurer, Worley Parsons
• Michael Cowan CFTP, Treasurer Eureka Funds Management
• Michael Donohue, Treasurer, ME Bank
• Kate Duffy FFTP, Treasurer, Yalumba Wine
• Riko Eguchi CFTP, Treasurer, Cochlear
• Kate Gillies, Acting Manager Treasury, Strategy & Risk, Hydro Tasmania
• Marion Johnston CFTP, Treasurer, CSR
• David Kenworthy CFTP (Snr), Group Treasurer, UGL Limited
• Greg Manning CFTP, Treasurer-Capital Markets, Qantas
• Heather McGuirk CFTP, Treasury Manager, Lion Nathan National Foods
• Alistair McLean CFTP, Treasurer, Metcash
• Melvin Nunes CFTP, Deputy CEO WA Treasury Corporation
• Stephen Rochester FFTP, CEO Queensland Treasury Corporation
• Ayten Saridas, Treasuer, Santos
• Erin Strang CFTP, Treasurer, Queensland Rail
• Trevor Tilley FFTP, Assistant Treasurer, Alcoa Australia
• Zlatko Todorcevski CFTP, CFO, Oil Search
• Simon Ward CFTP, GM Finance, Foxtel
• Jane Wedgewood CFTP, Manager Treasury, Western Power
• Andrew Wilkinson CFTP, Managing Director, ALE Property Group
• Paul Williams CFTP, Treasurer, Heritage Building Society
• Eric Williamson, Treasurer, National Australia Bank

Other Speakers include

• Vijey Ananda, Head of Transaction Banking, Standard & Chartered
• Bradley Anderson, Head of Accounting Solutions, BNP Paribas (London)
• Steven Cunico CFTP, Executive Director, Ernst & Young
• Geoff Faulder CFTP, Consultant, Faulder Consulting
• David Hornery, Head of Institutional, Corporate and Specialised Banking, NAB
• Robert Kirk, Executive Director, Restructuring & Debt Advisory, UBS
• Didier Leblanc, Managing Director, Head of Loan Syndication, Asia Pacific & Japan, BNP Paribas
• Michael Liu, Head of Capital Management, UBS
• Rory Manchee, MD Evaluations & Risk Strategy, Standard & Poor’s
• Jiro Ockuchi, CEO, Reval
• Ron Ross, Head of Bond Origination, Australia, Global Capital Markets, ANZ
• Adesh Sarup, Director, Asia, Produce & Portfolio Management, Trade & Supply Chain, ANZ
• David Simmonds, Head of Strategy & Research, RBS (London)
• Kate Stewart, Managing Director, Debt Capital Markets, Australia & NZ, BNP Paribas
• Natalie Wells CFTP, Senior VP, Moody’s Investor Services

For further details and to register on-line

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August a big month for bond issuers

Banking Day (1 Sep.) August was the second largest month of the year, with over $11 billion of bonds sold over the period. March digested a hefty A$16 billion, according to a Reuters report.

This week several large issues have priced. Bank of America’s order book is well in excess of $1 billion on a three-year kangaroo bond offer that was launched with a minimum issue size of A$500 million with a margin of 210 basis points over the bank bill swap rate.

Credit Suisse’s five-year floating rate note issue has received more than $750 million worth of bids. The issue was initially announced with a size of $500 million at around 160 basis points over swap.

Macquarie University increased its bond debut to $250 million from a minimum of $200 million following good demand, in particular for a non-financial borrower. The 10-year bond issue was initially marketed at 170 basis points over swap.

Total Australian dollar bond issuance this year, excluding asset-backed securities, stands at $62 billion. This is slightly more than the volume seen at the same time last year, according to Reuters.

To view other articles for Banking Day subscribers

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Gold rallying to $1,500 as Soros' bubble inflates

Bloomberg (2 Sep.) Investors are accumulating enough bullion to fill Switzerland’s vaults twice over as gold’s most- accurate forecasters say the longest rally in at least nine decades has further to go no matter what the economy holds.

Analysts raised their 2011 forecasts more than for any other precious metal the past two months, predicting a 10th annual advance, data compiled by Bloomberg show. The most widely held option on gold futures traded in New York is for $1,500 an ounce by December, or 18 percent more than the record $1,266.50 reached June 21. Holdings through bullion-backed exchange-traded products are already at more than 2,075 metric tons, within 0.1 percent of the all-time high.

Buyers accumulated almost 278 tons of gold in 2010 across 10 ETPs tracked by Bloomberg, worth $10.4 billion at this year’s average price. Total holdings are almost twice Switzerland’s official reserves of 1,040 tons, data compiled by the World Gold Council show. ETP holdings reached a record 2,078 tons July 19, data compiled by Bloomberg show.

One of the biggest buyers has been Soros Fund Management LLC, which oversees about $25 billion. George Soros, who made $1 billion breaking the Bank of England’s defense of the pound in 1992, described gold as “the ultimate asset bubble” at the World Economic Forum’s January meeting in Davos, Switzerland. Buying at the start of a bubble is “rational,” he said.

Soros Fund Management sold 341,250 shares of the SPDR Gold Trust, the largest ETP backed by bullion, in the second quarter, according to an Aug. 16 Securities and Exchange Commission filing. That still left a holding of 5.24 million shares, equal to almost 16 tons. Soros declined to comment on the change, through a spokesman.

To view full article by Bloomberg

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IASB engages with FTA re IFRS 9 Hedge Accounting Issues

Following the FTA's letter dated 30 July 2010 to the International Accounting Standards Board (IASB) to consider in its review of International Financial Reporting Standard (IFRS) 9 – Hedge Accounting, the Technical Principal from the IASB leading the project has engaged with the to FTA to further explore the issues raised by the FTA.

It is the FTA’s view that Australian companies are particularly well qualified to comment on hedge accounting proposals given the significant number of large corporate users of hedge accounting instruments, in particular our highly regarded global mining houses, airlines and globally-ranked banks. Furthermore, the Australian market is very sophisticated and many Australian companies are active participants in the global capital markets which necessitates the use of derivatives for risk management purposes.

At the request of our members, the FTA intends to continue to play an active role in the debate of IFRS 9 – Hedge Accounting through a series of forthcoming forums and in a technical session at the FTA annual Congress to be held in Melbourne on 27-29 October 2010.

The development of the letter was led by FTA member Steven Cunico, Executive Director, Ernst & Young.

The letter details the FTA’s proposals for simplifying and improving aspects of IFRS 9 – Hedge Accounting, together with supporting arguments from members of the FTA proposals can be viewed at www.finance-treasury.com

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FTA Member Survey completed - wine winners announced!

A special thank you to the hundreds of FTA members that completed the 2010 FT member survey.

The response rate for the survey was well above the average for professional associations.

The 12 recipients of one bottle of Yalumba wine each are:

The winners will be sent the bottles of wine in the mail over the coming weeks.

The FTA Board will be releasing summary results of the survey to members in the near future as well as a providing a brief presentation during the 2010 FTA Congress in Melbourne 27-29 October.

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Public Sector Treasury Stream at FTA 2010 Congress

Public Sector Treasury officials will be able to participate in a dedicated stream of technical sessions at the 23rd annual Finance & Treasury Association Congress to be held in Melbourne on 27-29 October 2010. In addition to this attendees will be able to participate in the gala dinner and welcome cocktail reception to network with fellow treasury professionals from the public and private sectors.

Topics for the Public sector stream at 2010 FTA Congress include:

• Finding efficient operating parameters in a public sector corporation
• Future options for PPP's and other procurement methods
• Formulating sound investment public sector policies and strategies
• Public sector borrowing constraints and alternative financing mechanisms

For further details and to register on-line.

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Moody's sees continued ratings stability for Australian corporates

Moody's Investors Service (31 Aug.) Moody's says that it expects the stable trend in Australian corporate ratings -- which has been evident for most of 2010 -- to hold as the new financial year progresses, though conditions are likely to remain choppy for a time as the effects of the sharpest slowdown in decades continue to make themselves felt.

"In particular, uncertain consumer demand, the wear-off in stimulus provided by Government handouts last year, increased interest rates, and a business sector that is yet to fully recover continue to weigh on a number of key sectors, including retail, airlines, building materials and construction," says Ian Lewis, a Moody's Vice President and Senior Analyst.

"In August last year, and subsequently reaffirmed in February this year, we flagged our expectation for ratings stability to emerge as the key trend for 2010," says Lewis. "Now, half way through the year -- the ratings are performing as we had expected."

Lewis was speaking on the release of a new Moody's report -- which he authored -- on ratings trends for Australian corporates. Over the next 12-18 months, the report says that Moody's sees corporate performance falling into three categories to show a "three-speed" performance:

The report is entitled Australian Corporate Sector Outlook. It can be found at www.moodys.com

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More offshore bank issuance coming as BOS Australia launches 2012

KangaNews (2 Sep) The run of Australian market issuance from international financial institutions (FIs) continued on September 2 as Bank of Scotland Australia Branch (BoS Australia) (A+/Aa3/AA-) launched a new two year transaction. Even before pricing on the new deal, international FIs have sold just over A$8 billion (US$7.3 billion) in Australia since early August, nearly A$6 billion of that via local subsidiaries.

To view the full article for KangaNews subscribers

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Results of AOFM Treasury Bond Tender 393

The results of the Australia Office of Financial Management (AOFM) bond tender on 1 September are as follows.

*Individual allotments may be higher due to rounding.

For further updates from the AOFM visit www.aofm.gov.au

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Conferences & Forums

Changes in Accounting for Financial Instruments Seminars

The International Accounting Standards Board (IASB) and its U.S counterpart the Financial Accounting Standards Board (FASB) have embarked on a project of sweeping reforms to accounting standards, following the global financial crises and pressure from the G20 to achieve a single set of high quality accounting standards. Many constituents have voiced concerns about the quality of the resultant standards if so much was undertaken so quickly. In response the IASB and the FASB issued a joint statement on June 24, 2011, noting the need to prioritise certain projects and delay others. Emerging from this statement was a clear message that the completion of the IFRS 9 financial instruments replacement project is on the top of the list.

The FTA invites you to a presentation to give you an update on the changes to accounting for financial instruments so far, and the direction expected from here. The session will cover a broad overview of the political and standard setting landscape, a detailed briefing on the changes and a reflection on the topical issues for treasurers.

Changes in Accounting for Financial Instruments Seminars

Melbourne, Friday 3 September 12pm for 12.30pm, PwC offices, 2 Southbank Boulevard, Southbank. Finish 2pm.

Sydney, Tuesday 7 September 3.45pm for 4pm, PwC offices, 201 Sussex St. Finish 6pm.

Perth, Monday 11 October 12pm for 12.30pm, PwC offices, QV1 Building Levels 19-21, 250 St Georges Terrace. Finish 2pm

Brisbane, Monday 18 October 12pm for 12.30pm, PwC offices, Riverside Centre, Lvl 15, 123 Eagle St. Finish 2pm

The workshops seminar will cover:

• Review of the political landscape
• Outlook for the immediate changes proposed
• Hedge accounting in the future - what to expect
• The Treasurers outlook post GFC - what have we learned and
• What are the topical issues

Presenters:
Kevin M. Stevenson, Chairman and CEO of Australian Accounting Standards Board, member of Financial Reporting Standards Board, NZ, and member of the Financial Reporting Council.

Ashley Rockman, Partner at PWC in the Global Capital Markets Group leading the treasury solutions team, specialising in advising clients in relation to hedging, financial instruments and funding solutions.

Corporate Treasurer Melbourne

Graeme Vavasseur CFTP, Assistant Group Treasurer, Amcor Group Treasury. Prior to joining Amcor, Graeme worked in various corporate treasury and other finance functions for major Australian companies such as AWB, North Ltd and SP AusNet (formerly PowerNet) in specialist treasury roles. Graeme is also an active member of the FTA’s Victorian Technical Committee.

Corporate Treasurer Sydney

Alistair McLean CFTP, Treasurer, Metcash Ltd. Prior to joining Metcash, Alistair held treasury roles at Lion Nathan, Worley Parsons, CBA, KPMG and HSBC. Between 2003 and 2006 Alistair designed and implemented CBA's in-house hedge accounting system.

To register and for further details

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FTA/Oakvale Treasury Forum, Hobart, Friday 10 September

The Finance and Treasury Association and Oakvale are pleased to invite Tasmania based Treasury professionals to a complimentary Treasury forum to be held in Hobart on Friday 10 September 12.30-2.30pm.

Corporate Treasuries are constantly facing a changing and volatile market place, changes to regulation, market practices, hedging environments, accounting standards. The GFC has changed the market environment and attitude towards risk management. Oakvale, in conjunction with the Finance and Treasury Association, are holding a discussion on the impact of these changes, the current market environment and what other changes are expected to occur.

The event will be facilitated by Paul Travers (brief bio provided below). Paul will present on the current status of the following topics and then facilitate a discussion on their impact on treasury risk management in Tasmania.

• Currency, Interest Rate Risk Management and Funding

• OTC Regulation

• IFRS 9

• Connectivity

• Investing and Funds Management

Aurora Energy has been kind enough to offer their offices for the meeting at;

Level 2, 21 Kirksway Place, Battery Point, Hobart

Friday, 10th September; Time 12:30 – 2:30pm

Lunch will be served.

RSVP by COB Wednesday 8 September to Paul Hopkins Oakvale, paulh@oakvale.com 02 8823 6233

Paul Travers

Executive Director of Oakvale Capital – Oakvale provides Treasury risk management services to over 200 clients across Australia. Director/Vice President – Finance & Treasury Association

Paul has worked with a large number of corporations on their treasury risk management over the last 15 years. Over the last 20 years, Oakvale Capital has been assisting more than 200 treasuries and organisations with their treasury risk management across Australia and New Zealand. Oakvale Capital is holding this seminar in conjunction with the FTA.

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Treasury Risk Policy - uncovering the demands of best practice, Brisbane 17 September

The Finance & Treasury Association invites you to a half-day seminar to:

• Understand the importance of treasury policy development in volatile times from a governance perspective
• Learn how to develop a policy framework and the issues considered
• Discover the specific considerations in drafting corporate FX, liquidity and credit policies
• Appreciate its application in the corporate context and what it means for the business

Expert presenters include: Nathan Morrison from PricewaterhouseCoopers, Don Burtt CFTP, Manager, Generation and Market Development at Ergon Energy, Glen Giles CFTP, Financial Controller, Arcadia Energy and Mike Dontschuk from Dontschuk & Associates.

The forum will be held in Brisbane on Friday 17 September (11.00am - 2.30pm).

For further details and to register on-line

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Understanding Treasury Management - 3 day courses by TTS, ANZ, E&Y - Sept/Nov

Understanding Treasury Management – 3 day course

Melbourne 15-17 September 2010

Sydney 15-17 November 2010

Australia’s longest running Treasury Management course presented by experienced practitioners and presenters. This course provides comprehensive training in the fundamentals of funding and liquidity management, foreign exchange and interest rate risk management and treasury operations. It also includes a computer-based FX Dealing Simulation game and the Treasury Pursuit game, both games are designed to re-inforce the key learnings and maintain interest in a fun and competitive environment.

These courses are normally residential but now include a non-residential option. Please visit www.treasurytraining.com.au for a short video and to download the brochure (which includes the registration form). Enquiries to Ivan St Clair 0411 475 833.

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2010 FTA Congress Risk, Recovery and Reward - Navigating the New Normal

The 23rd Annual Congress for Corporate Treasurers, CFOs and their staff involved in treasury, risk management and the financial markets will be held in Melbourne 27-29 October.

This year’s program has been designed specifically to provide compelling topics for corporate treasurers, CFOs and other finance professionals. The program will feature many practical, in-depth forums and discussion panels sharing current thinking and best practice.

Topics for 2010 include:

• The shifting landscape of bank regulation and implications for corporate treasury markets
• The pros and cons of a public credit rating
• The “new normal” in banking relationships
• Finding flexibility in debt capital markets
• Credit and commodity risk management

Opening Plenary Session

RISK, RECOVERY, REWARD – Navigating the New Normal

9.00am Going forward from the GFC - A Chairman’s perspective - Linda Nicholls AO

9.20am Australia as a Fina ncial Centre - Building on our Strengths - Mark Johnson AO

9.40am Getting Deals Done in Difficult Times - Michael Traill AM, CEO, Social Ventures Australia

10.00am Panel Discussion

Treasurers Roundtable

The role of the Treasurer post the GFC – lessons learnt in finding funding flexibility over the past year

CHAIR: Mike Dontschuk FFTP, FTA President
Nell Bingham CFTP, Company Treasurer, Aurora Energy
Riko Eguchi CFTP, Treasurer, Cochlear
Ross McKean CFTP, Group Treasurer, Orica
Asrar Rahman FFTP, Group Treasurer, Woolworths
Adrian Went, Head of Balance Sheet Management, Group Treasury, ANZ

The full programme can be viewed here

For further information and registration details.

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