Buyback Facility

Australian Government Security Buyback Facility

Investors are able to sell their holdings of Australian Government Securities back to the Australian Government via the Australian Government Security Buyback Facility (Buyback Facility). The Buyback Facility is operated by Computershare Investor Services on behalf of the Australian Government.

Investors will be able to sell their holdings of Treasury Bonds, Treasury Indexed Bonds or Tax-Free Stock. Treasury Bonds or Treasury Indexed Bonds will be bought back in $1,000 face value increments with a minimum amount of $1,000 face value. Investors will not be charged a fee to utilise the Buyback Facility.

Pricing

Investors will receive a market price for any bond sold through the Buyback Facility. Prices are set based on prevailing mid-rate prices in the secondary wholesale market. The price data is sourced from the Yieldbroker DEBTS system which is a major electronic trading platform for fixed income securities in the Australian and New Zealand financial markets. The prices set each day will apply to all buyback transactions that are successfully processed on that day. Prices are provided on a ‘T’ basis; that is, the price offered to investors will include accrued interest up until the date when the transaction is processed. The price offered to investors on bonds that are ex-interest (that is, seven calendar days before the coupon payment date) will reflect the fact that the investor is entitled to receive the coupon payment on the bond.

Further information about the pricing formulae and information memoranda for these bonds can be found on the Treasury Bonds and Treasury Indexed Bonds web pages.

How to sell

In order to sell Australian Government Securities back to the Australian Government, investors must complete then submit via mail a Buyback_form [PDF 189KB] to Computershare. Buyback forms that are incomplete or do not contain the necessary supporting documentation will not be processed by Computershare.

The proceeds from the sale of holdings will be distributed to investors within three business days of the receipt of the Buyback form. Proceeds will be paid to investors in accordance with their current payment instructions held by the Registrar.

Buyback prices

Bond buyback prices

Disclosure

Information on this website regarding the Australian Government Securities Buyback Facility does not constitute investment advice. Representatives of the Australian Government or Computershare are unable to provide investment advice. Investors should obtain independent financial advice before selling Australian Government Securities. It is possible for capital gains or losses to be made if Australian Government Securities are sold prior to maturity.

Last updated: 24 March 2017