BusinessDesk17 August 2026
Chorus retail bond secured over national fibre network
The NZ$250m issue marks the first retail bond in several years secured directly over Chorus's access network.
About this bond
The Chorus NZ Senior Secured Retail Bond is secured over Chorus's nationwide access network, the backbone of New Zealand's broadband and voice services.
Revenues are supported by long-term regulated fibre revenues and wholesale copper line rentals, producing a stable semi-annual coupon profile.
This is one of the few retail issues in the market secured directly over critical national telecommunications infrastructure.
Security
Senior secured over network assets
Revenue
Regulated wholesale fibre and copper
Listing
Expected NZX Debt Market quote
Interest payments
Semi-annually, in arrears
Network reach
Covering 87% of NZ addresses
Tax
RWT deducted at your elected rate
Where the money goes
Fibre network completion
Final build and optimisation of the UFB fibre footprint, including rural and regional rollout completion.
Copper to fibre migration
Funding customer migration programmes and legacy copper network decommissioning.
Network resilience
Upgrading backhaul, exchange capacity and disaster recovery infrastructure.
Refinance existing debt
Repaying shorter-dated bank facilities and fixed-rate notes with new long-term bond funding.
Bond return calculator
Estimate coupon payments and after-tax returns at 6.05% p.a.
Per coupon payment
$227
Gross interest per year
$908
Total gross over 5 yr
$4,538
RWT deducted (33%)
- $1,497
Total after tax
$3,040
If coupons reinvested
$5,253
Indicative only. Figures assume the bond is held to maturity and the coupon rate does not change.
Latest news & market buzz
Interest.co.nz10 August 2026
Fibre revenues stabilise as copper disconnections slow
Analysts note regulated fibre revenues are providing predictable cash flows that support bond-style funding.
NBR3 August 2026
Telecom infrastructure bonds attract income investors
Secured network assets are drawing investors away from unsecured corporate credit in the current rate environment.
The Post26 July 2026
Rural broadband completion on track for 2027
The final phase of the UFB programme is expected to extend fibre reach to more regional communities.
Key risks
- Credit risk: repayment depends on Chorus meeting its obligations under the secured bond.
- Regulatory risk: fibre pricing and access terms are set by the Commerce Commission and may change.
- Technology risk: shifts in wireless or satellite broadband could affect long-term network demand.
- Liquidity risk: you may not be able to sell on market at the price or time you want.
- Interest rate risk: if market rates rise, the market value of the bond may fall below face value.
Frequently asked questions
How often is interest paid?
Every six months in arrears, in NZ dollars, with RWT deducted at your elected rate.
What is the minimum investment?
NZ$10,000, then multiples of NZ$1,000 above that.
Is this covered by the Depositor Compensation Scheme?
No. The DCS covers deposits with licensed NZ deposit takers. Corporate bonds are not covered.
Can I sell before maturity?
Once quoted on the NZX Debt Market you can sell through a broker. The price you receive depends on market conditions.
How do I apply?
Register your interest using the form on this page and a specialist will send you the offer document and application link.