NBN Co sources $2.6bn from US bond markets

NBN Co said it had secured US$2 billion (A$2.6 billion) from the US bond markets, which it would put towards its existing government loan and ongoing capital expenditure.

The network operator said in a statement that the bond issue comprised “a five-year bond of $US750m and a 10-year bond of $US1.25 billion.”

The five-year bond will mature in May 2026, while the 10-year bond will mature in May 2031.

“The proceeds will be used for general corporate purposes including the refinancing of NBN Co’s Commonwealth loan and to fund future capex plans,” it said.

NBN Co started paying off its $19.5 billion government loan earlier this year using privately-sourced debt funding.

The company needs to refinance the outstanding amount of the government loan by mid-2024.