NBN Co is looking to capitalise on low interest rates to secure additional debt funding after lower disconnection payments to Telstra and Optus helped the company pull off a $1.1 billion earnings turnaround for the first half of fiscal 2021.
The marked improvement in the government funded organisation’s books was underpinned by a $630 million reduction in payments made to Telstra and Optus. NBN Co pays the two telcos for every customer that switches from their respective networks to the NBN. “We will be looking to go further to various markets. The timing will depend upon the conditions of the market or the length of securities that we can get, various interest rates that will be available...but we certainly do intend to go to other markets in coming months,” Mr Rue said.NBN Co announced on Wednesday it had paid $3 billion of the $19.5 billion it owes the government. The network issued $1.
Mr Rue’s comments follow an announcement that more than 100,000 premises would be upgraded with fibre-to-the-premise technology as part of a $4.5 billion program.