Chorus closes capital notes offer, sets initial interest rate

Chorus (NZX:CNU) announced the successful closure of its capital notes offer, raising NZ$170 million through a bookbuild process. These unsecured, subordinated, redeemable, cumulative, interest-bearing Capital Notes will be issued on June 6, 2025, and quoted on the NZX Debt Market beginning June 9, 2025, under the ticker code CNU050. The initial interest rate for these notes has been set at 5.90% per annum. This rate is comprised of an initial margin of 2.05% and a 6-Year Benchmark Rate of 3.85%. This initial interest rate will remain in effect until the first reset date on June 6, 2031, after which it will be reset every five years, pending early redemption by Chorus. A final terms sheet, updated to reflect the initial interest rate and margin, has been released via the NZX. Investors can contact the Joint Lead Managers, Forsyth Barr Limited and Bank of New Zealand, for more information or seek advice from their financial advisor.