Released by the Department of Finance under the Freedom of Information Act 1982
FOI 16/128 Document 3
From:
Caruso, Daniel
To:
s22
; Smith, Philip; s22
Jaggers, Andrew; Edge, John
Cc:
Pola, Belinda
Subject:
NBN announcement today [SEC=UNCLASSIFIED]
Date:
Friday, 18 November 2016 8:47:59 AM
Attachments:
181116 Fifield and Cormann - Final draft Government loan secures NBN rol....docx
Importance:
High
UNCLASSIFIED
Good morning
The NBN loan announcement is on track for this morning.
s22
Ministers have cleared the attached media release.
s22
Thanks
Daniel
UNCLASSIFIED
Released by the Department of Finance under the Freedom of Information Act 1982
FOI 16/128 Document 3
JOINT MEDIA RELEASE
Government loan secures NBN rollout
18 November 2016
Under the Coalition, the NBN is on schedule, ahead of its revenue forecasts and has
met or exceeded its key rollout targets 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 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 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.
Minister Fifield: Geraldine Mitchell | 0407 280 476 | xxxxxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx
Minister Cormann: Karen Wu | 0428 350 139 | xxxxx.xx@xxxxxxx.xxx.xx
