Borrow

Low Cost Loans

TCV is able to borrow funds at a low cost as a result of its diverse funding sources, strong financial market standing and Government guarantee. Our loan pricing policy passes this cost advantage on to our clients.

TCV's range of loan facilities includes term lending, working capital and structured financing.

TCV's loan facilities are simple to administer and flexible to the needs of the client. We offer choices of term, an interest rate setting mechanism and a repayment schedule.

Key features

  • cost effective funding and low fees
  • guaranteed liquidity with ready access to funds
  • options for early repayment or restructure of loans without incurring TCV-imposed transaction penalties
  • flexible terms and repayment arrangements
  • a wide range of relevant financial products
  • clear documentation and efficient settlements.
Loan Products

TCV tailors the following range of loan facilities to each client's specific needs:

Short-Term Loans
Short-term loans are for clients seeking to borrow for a period between one day and one year. They include a highly liquid 11am facility that makes funds available on a same-day basis. Short-term loans are generally used to fund working capital and cash management requirements.

Term Floating Rate Note Loans
Term floating rate note loans are for fixed terms and have a variable rate of interest. The rate of interest is reviewable monthly, quarterly or semi-annually. Term floating rate note loans are an attractive hybrid, combining stability of finance as to amount and term, with exposure to short-term interest rates.

Fixed Rate Loans
Fixed rate loans are for clients seeking to borrow for periods longer than one year. These loans include:

  • fixed interest loans
  • fixed rate facility and consolidating fixed rate facility loans
  • amortising principal and interest loans
  • structured loans.

TCV offers fixed rate loans for periods of up to 12 years. Special arrangements can be provided for loan terms greater than 12 years.

Fixed rate loans are generally used to fund assets with a corresponding life or fixed assets that have a long life. Their fixed interest costs provide the borrower with a high level of certainty.

Flexible Rate Set Term Loans
Flexible Rate Set Term loans are for a fixed term and coupon payment frequency. They provide clients with the flexibility to set the interest rate at the floating rate benchmark rate or fix the interest rate for certain periods during the life of the loan. The Flexible Rate Set Term loan provides for multiple resets of the interest rate from floating to fixed, or from fixed to floating. Interest rate resets occur on coupon payment dates.

Forward Settlement Loans
Forward settlement loans are settled on a future date. TCV can arrange to settle all types of client loans on a future date. Loan terms are agreed on the transaction date with the funds delivered on the settlement date. Interest accrues from the settlement date.

TCV manages the underlying derivative arrangements to provide forward settlement loans to clients. As a result, forward settlement loans are in part a financial arrangement. Clients wishing to arrange a loan with a forward settlement date will require both of the following:

  • a Treasurer's borrowing approval
  • a Treasurer's approval to enter into a forward settlement financial arrangement.