Chorus taps Crown Fibre Holdings for funding advance

18 Jul 2014

Chorus, the telecoms network operator tasked with building the bulk of New Zealand’s Ultra Fast Broadband (UFB) network, has cut a deal with Crown Fibre Holdings (CFH) to bring forward funding worth NZD178.0 million (USD154.8 million), albeit at a high interest rate. The Wellington-based company has a conditional agreement with CFH, the government entity funding the UFB build, which allows it to bring forward funding budgeted to be spent in the 2018 and 2019 financial years, to October 2015.

Chorus CFO Andrew Carroll commented: ‘Chorus is already reshaping its business model and has a range of initiatives that will commence in FY15 to address the economic impact of the interim benchmarking pricing that is due to apply from 1 December 2014. This facility provides useful additional financial flexibility and liquidity if needed and does not have any ongoing financial cost unless drawn’.

New Zealand, Chorus (New Zealand)