Portfolio Linked Loan

Structured portfolio management for clients with large borrowing requirements ($100 million+)

Recommended for

Clients needing:

  • large borrowings ($100 million+), between 3 months and into perpetutity
  • the ability to take an active role in the structure and management of their loan portfolio, and
  • a high level of cost certainty (with the ability to smooth exposure to the interest rate cycle).

Key features

Interest rate
  • Interest rate able to be reset annually, quarterly, monthly or as required
Key benefits
  • Clients can have more than one Portfolio Linked Loan
  • The funding arrangements are regularly rebalanced to a target-modified duration (set by the client)
  • Client provides a mandate for the management of their underlying portfolio
  • Low cost loan
  • Client has ability to:
    • Monitor the profile of their debt
    • Structure their portfolio as an interest-only or balance reducing debt
    • Structure their portfolio as an interest-only or balance reducing debt
Maximum loan term
  • Up to and including perpetuity
  • Loan can be structured to any term length to suit client need, business objectives and interest rate risk appetite
Limits
  • Evergreen or reducing limit capability (subject to State Borrowing Program approvals and approval by relevant administering departments)

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