The Crown is entering into binding agreements to monetise the debt it holds in Chorus, Finance Minister Nicola Willis and Infrastructure Minister Chris Bishop announced on Friday.
The Government has been exploring selling the debt and equity securities it holds in the telecommunications lines company. Chorus was awarded the vast majority of areas to construct the Ultrafast Broadband (UFB) initiative created in 2009.
In December, the Government announced it had decided to progress the early monetisation of interest-free loans provided to Chorus between 2012 and 2023 to help speed up the rollout of fibre broadband across New Zealand.
Between 2012 and 2023, the Government provided $1.336 billion in interest-free loans and in 2025, Chorus had repaid $170 million of that.
On Friday, Willis said those loans had a book value of $642 million.
“The fibre rollout is now complete and has delivered enormous benefits for New Zealanders, with most people now able to connect seamlessly with family, friends and colleagues across the country and around the world," Willis said.
“Rather than waiting until 2036 to be fully repaid the Government has decided to monetise the current value of the loan so it can be reinvested in other priorities.”
Willis said the transaction delivers net proceeds to the Crown of approximately $702 million, calling it "a strong commercial result representing a gain over book value of over $60 million."
These proceeds were anticipated in Budget 2026 and would go towards funding more infrastructure that New Zealand needs. This included the Cambridge to Piarere Rd of National Significance, classrooms and hospital upgrades.
Bishop said ministers have agreed that National Infrastructure Funding and Financing (NIFFCo) can give investors limited protection for unlikely risks “to get better value from the sale so there are more funds available for reinvestment now”.
“Recycling capital from mature investments that have achieved their purpose into new infrastructure projects is a practical example of good financial management," Bishop said.
“The UFB securities are not ordinary shares. Their early monetisation will not change the ownership of Chorus, nor change the services and assets it provides or owns.”
The settlement is expected to occur sometime in August.
Chorus acknowledged the Government’s announcement on the New Zealand stock exchange (NZX).
Currently, Chorus' ordinary shares trade at $9.62 each on the NZX and the company's market capitalisation is $4.17 billion.
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