Chorus launches NZ$170m capital notes offer

Chorus today announced the launch of its Capital Notes offer, seeking up to NZD 170 million from New Zealand investors. The offer, which opened on May 26, 2025, is slated to close on May 29, 2025. The Capital Notes feature a 31-year term maturing on June 6, 2056, with potential early redemption from March 6, 2031, under specific conditions. The interest rate will be fixed for the initial six-year period, then reset every five years unless redeemed earlier. The initial interest rate will be the greater of the 6-Year Benchmark Rate plus an indicative margin of 2.10% to 2.25% per annum or a minimum initial rate of 5.50% per annum. S&P Global Ratings has assigned the Capital Notes a BB+ credit rating, while Moody's Investors Service has assigned a Baa3 rating, each a notch below Chorus's issuer credit rating. The Capital Notes are expected to be issued on June 6, 2025, and quoted on the NZX Debt Market on June 9, 2025.