Unlocking Capital: Government to Sell Chorus Securities for Infrastructure Investment

The Government is exploring ways to free up capital locked in its investment in Chorus, to redirect into capital projects of more use to New Zealanders.

National Infrastructure Funding and Financing (NIFFCo) will investigate the feasibility of selling the debt and equity securities it holds in Chorus.

These debt and equity securities were purchased as the Crown’s funding contribution to the delivery of the Ultra-Fast Broadband initiative, that was completed in 2022.

Minister of Finance Nicola Willis says that with the completion of the Ultra-Fast Broadband initiative there is no longer a policy reason for the Crown to own these securities.

Most New Zealanders were probably not aware the Government owns this investment in Chorus, nor feels any particular benefit from it.

That’s why it is sensible and prudent to consider the feasibility of divestment to redirect the Government’s capital stored in Chorus into investments that New Zealanders can benefit from.

The Government is continuously identifying opportunities to support its fiscal strategy and to drive economic growth. Early monetisation of NIFFCo’s Chorus securities is one opportunity that is worth exploring.

Infrastructure Minister Chris Bishop says he has asked NIFFCo to explore the feasibility of selling the securities to private investors in early 2026, rather than waiting another five to ten years for the securities to mature. This process will be done with oversight from the Treasury.

If such a sale gains approval and goes ahead, the proceeds would return to the Crown and the cash would be made available for capital allocations – that’s hospitals, schools, and roads – in Budget 2026.

That means Kiwis reaping the benefits of jobs, infrastructure and growth sooner.

NIFFCo’s programme of work will include due diligence of the contractual terms of the securities, commercial valuation, testing of market appetite, and advice on an optimal sales process.

It’s expected advice on whether to proceed with the sale to go to the NIFFCo board and shareholding ministers by the end of 2025.

Ministers require that for any sale to gain approval, the decision to go to market - and the final sale price – will meet value-for-money expectations.