Hon Nicola Willis | Hon Chris Bishop | Source: Beehive.govt.nz
The Government has decided to progress with the monetisation of the debt it holds in telecommunications lines company Chorus.
“The money raised will be invested in capital projects such as schools, hospitals and roads,” Finance Minister Nicola Willis says.
“Between 2012 and 2023 the Government provided $1.336 billion in interest-free loans to Chorus to help finance and accelerate the roll-out of fibre broadband across New Zealand. Chorus repaid $170 million of that funding in 2025. The fibre rollout is now complete and has been of huge benefit to Kiwis, most of whom can now connect seamlessly with friends, colleagues and family all over the world.
“The loan to Chorus is not due to be fully repaid until 2036 but it has served its purpose so, after testing the market, the Government has decided to get the present value of its money back sooner so it can be invested elsewhere. The alternative would be to wait another five to 10 years for Chorus to repay the Crown.”
Infrastructure Minister Chris Bishop says the funds received through this process will be ring-fenced and redeployed into Budget 2026 to help fund other infrastructure.
“This is a pragmatic decision that will free up hundreds of millions for more urgent infrastructure needs,” Chris Bishop says.
“The monetisation process will commence in early 2026 and, subject to market conditions, investor feedback, and value for money considerations, is scheduled for completion in the second quarter of 2026.
“It is important to note that the Government does not have an equity stake in Chorus and the securities involved are not ordinary shares. They don’t generate dividend revenue. Their early monetisation will not change the ownership of Chorus, nor change the services and assets it provides or owns.”
