Government cashes in Chorus fibre loans early for $702m
The Government says the deal brings forward the value of old Chorus fibre broadband loans, but has not disclosed the scale of investor protection attached to the transaction.
The Government has struck deals to sell back the interest-free loans it provided to Chorus for building Ultra-Fast Broadband infrastructure, generating a net gain of about $702m. Finance Minister Nicola Willis announced the transaction, which was anticipated in this year's Budget, would repay less than the $642m book value of the loans originally due in 2036.
The extra proceeds could fund more infrastructure projects such as roads, hospitals and schools, though the funds are not earmarked. The sale also includes some investor protection through NIFFCo, a Crown-owned company tasked with attracting private capital for public projects. Infrastructure Minister Chris Bishop said NIFFCo could provide limited protection for unlikely risks to generate better value, freeing up more funds for reinvestment.
However, the government has not disclosed details about the nature, scale or potential Crown exposure involved in the deal. The transaction does not alter Chorus's ownership or the services and assets it provides.
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