Australia's ACT Treasury to sell indexed bonds

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SYDNEY, May 19 (Reuters) - The Australian Capital Territory
(ACT) Department of Treasury said it plans to raise an issue of
inflation-linked bonds to help fund a water project.

The Treasury, which has not issued a large bond since 2000,
said it will be meeting with investors in the week of May 26.
Presentations will include a stop in Sydney on May 26 and 27.

The Treasury did not give details on the issue size. The
issue will consist of CPI-linked annuity bonds, a type of
inflation-linked bonds.

Macquarie Bank (MQG.AX) will be leading the offer,
according to a market source.

The Treasury's funding requirements for the year ending in
June 2008 are around A$300 million ($286 million), and around
A$275 million for the following year.

It operates a A$2 billion domestic debt programme which is
rated AAA by Standard & Poor's.

The Australian Capital Territory is the region around the
nation's capital, Canberra.
($1=A$1.05)
(Reporting by Cecile Lefort)