Chorus issues 25 million pounds in bonds

Thursday 22nd December 2011

Chorus, New Zealand’s largest telecommunications network, has issued a further 25 million British pounds in corporate bonds.

The bonds will be consolidated alongside the existing 234 million pounds of bonds Chorus has already issued at a rate of 6.75 percent.

The bonds “enable Chorus to reduce the amount of funding required under our syndicate bank facility,” said Andrew Carroll, chief executive at Chorus.

Chorus has now issued a total of $259 million pounds in bonds, which will mature in 2020.

Chorus was carved out of Telecom, chosen by the Crown to build an ultra-fast broadband network for about 830,000 premises, representing approximately 70% of the government-subsidised UFB initiative. In all, Chorus expects to deploy about 20,000 kilometres of fibre for the UFB and Rural Broadband Initiatives by 2020.

The new fibre network will complement Chorus' existing fibre and copper network, which provides about 1.8 million connections. Chorus shares are currently trading at $3.00.

BusinessDesk.co.nz

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