NBN Co, the government-owned corporation that operates Australia’s National Broadband Network, has successfully raised $US650 million ($988 million) through a bond issue in the US private placement market. The deal, finalised last week, attracted significant investor interest, highlighting strong confidence in the company’s financial standing. NBN Co provides wholesale broadband services across Australia, connecting homes and businesses to the internet via a mix of technologies. It aims to bridge the digital divide by delivering fast, reliable broadband to all Australians.
The offering was heavily oversubscribed, with total demand reaching $US4.8 billion, representing a more than seven-fold oversubscription. This strong interest came from a diverse range of global investors following a roadshow conducted in August. The company noted that the pricing achieved was the best on any five-year US dollar bond it has issued to date. NBN intends to use a portion of the funds raised to refinance existing debt obligations.
Fiona Trigona, NBN’s executive general manager and group treasurer, stated that the transaction reflects strong market confidence in NBN’s story. She cited the company’s strong credit profile and a well-diversified following from global investors as key factors. NBN also has $8.6 billion of green and sustainability bonds outstanding, which are being used to fund energy-efficient fibre projects and enhance digital capabilities in regional and remote areas.
In addition to its bond activities, NBN recently confirmed a deal with Amazon to utilise the US company’s low-earth-orbiting satellites. This partnership aims to deliver wholesale broadband services to regional and remote areas, with services expected to commence next year.
