The Government has confirmed it will move ahead with plans to monetise the debt it holds in telecommunications network operator Chorus, freeing up funds for major public infrastructure investment.
Finance Minister Nicola Willis said the proceeds would be directed into capital projects such as schools, hospitals and transport infrastructure. She said the Crown provided $1.336 billion in interest-free loans to Chorus between 2012 and 2023 to support and accelerate the nationwide fibre broadband rollout, which has since been completed.
Chorus repaid $170 million of the funding in 2025, with the remaining balance not due until 2036. However, Willis said the loans had achieved their purpose and the Government had opted to recover the present value of the debt earlier, rather than waiting several more years for full repayment.
Infrastructure Minister Chris Bishop said the funds raised would be ring-fenced and redirected through Budget 2026 to help meet pressing infrastructure needs. He described the move as a practical step that could unlock hundreds of millions of dollars for projects requiring urgent investment.
The monetisation process is expected to begin in early 2026 and, subject to market conditions and value-for-money assessments, conclude in the second quarter of the year.
Ministers stressed the transaction would not alter Chorus’ ownership or operations, noting the Government does not hold equity in the company and the securities involved do not generate dividends.
