Spark partners with Challenger for new receivables financing deal

Spark New Zealand has partnered with ASX-listed financial services firm Challenger Limited to establish a new financing structure for its interest-free payment (IFP) plans, aimed at acquiring mobile handsets and accessories. The sale of existing IFP receivables is expected to reduce Spark's net debt by ~$240 million in H1 26. This move supports capital efficiency and return on invested capital while expanding its mobile business.

The partnership also includes an ongoing arrangement for Spark to sell future IFP receivables to Challenger regularly, optimizing working capital and increasing IFP funding for mobile customers. Spark will retain full control over the customer experience, including credit checks, collections, and device sourcing.

Spark chief executive Jolie Hodson highlighted the value of IFP options for customers, calling it a highly effective acquisition and retention tool. Victor Rodriguez of Challenger noted that acquiring these receivables provides high-quality, resilient cash flows, attractive to Challenger and institutional investors.