Government cashes in Chorus fibre loans early for $702m
The New Zealand government has reached an agreement to sell its interest-free loans to Chorus, the telecommunications infrastructure company, for $702 million. This move allows the government to realize a $60 million gain over the book value and provides immediate capital for infrastructure projects.
Why it matters
The transaction provides the government with immediate liquidity to fund public infrastructure, though it involves limited state-backed protections for private investors.
The Government has announced binding agreements to monetise the value of it's interest-free loans made to Chorus to help fund the Ultra-Fast Broadband rollout.
The loans were provided between 2012 and 2023 and were not due to be fully repaid until 2036.
Finance Minister Nicola Willis said the transaction would deliver net proceeds of about $702m, compared with the loans' book value of $642m.
Willis said the proceeds had been anticipated in Budget 2026 , which she said meant it could fund more infrastructure, including roads, hospital upgrades and classrooms, though she did not say the money would be specifically be earmarked for those projects.
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