Released by the Department of Finance under the Freedom of Information Act 1982
FOI 16/128 Document 2
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Draft joint media release - Government loan secures nbn rollout [DLM=Sensitive]
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201611xx - Joint Media Release - Government loan secures nbn network rollout.docx
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Released by the Department of Finance under the Freedom of Information Act 1982
FOI 16/128 Document 2
SENATOR THE HON. MATHIAS CORMANN
Minister for Finance
Deputy Leader of the Government in the Senate
SENATOR THE HON. MITCH FIFIELD
Minister for Communications and the Arts
xx, xx November 2016
GOVERNMENT LOAN SECURES NBN ROLLOUT
Under the Coalition, the NBN s47 is on schedule, ahead of its revenue forecasts and has met
or exceeded its key rollout target
C s across two financial years.
The Government’s equity contribution of $29.5 billion to NBN Co (nbn) is expected to be
fully utilised in the current financial year.
nbn's 2017 Corporate Plan assumes it will source private debt funding for the remaining
$19.5 billion needed to complete the rollout.
To help ensure that nbn can fully focus on the remaining rollout as it significantly ramps up,
the Government has decided to provide the remaining funding required to complete that
rollout through a Government loan to NBN Co Ltd on commercial terms.
In anticipation of a future privatisation of nbn as provided for in the NBN Companies Act
2011, it is expected that this loan will be re-financed by nbn on external markets in 2020-21.
A Government loan on commercial terms represents the most cost effective way s47C
to
raise the debt and secure funding to complete the rollout of this important national
infrastructure project.
nbn has recently obtained strong indicative credit ratings from credit s47C
agencies,
which shows that nbn’s business case is strong. These indicative ratings were improved from
2017 Corporate Plan assumptions. Commonwealth’s commercial loan terms will be set in
line with the credit ratings achieved by nbn.
[ENDS]
Media Contacts
For Minister Cormann - Karen Wu - 0428 350 139
Released by the Department of Finance under the Freedom of Information Act 1982
FOI 16/128 Document 2
For Minister Fifield – Geraldine Mitchell - 0407 280 476
