NBN Co made a total of $11.6 billion as repayment on the $19.5 billion loans of the federal government to the company. This figure was revealed in the mid-year budget update of the federal government as of 31 October.

It was in December 2016 when the loan was established. The commercial terms were intended to bridge the gap between the capped equity contributions of the government and the cost of the NBN rollout. The loan was fully drawn down in July 2020. Under the terms, it must be repaid in full by 30 June 2024.

Because of this, the government’s record of support was rated as 'Strong' by Fitch Ratings as the support from the government was seen as available when needed. This support includes the $19.5 billion of government loans, as well as $29.5 billion in equity and a supportive regulatory framework.

However, under the same Fitch Ratings, NBN Co failed to score 'Very Strong' since it is not expected that there will be a continuous cash injection after the completion of its build-out or state support in an attempt to sustain its financial structure. Nevertheless, it is anticipated that support would be available when needed. This is seen to be through the guarantee of debt or other obligations as well as other mechanisms possible.

Meanwhile, in the Mid-Year Economic and Fiscal Outlook released yesterday, it was revealed that the term of a loan to Telstra, which supported the acquisition of the company of Digicel Pacific is not yet finalised. In this case, the interest rate is commercial in confidence. However, the government revealed that it would provide a US$1.33 billion package to support the acquisition. The funds will be sourced through Export Finance Australia, and the announcement was made earlier this year.

According to the MYEFO: “Telstra will own and operate Digicel Pacific, contributing to secure and reliable infrastructure in the Pacific region, which is critical to economic growth and development. This package will include debt and equity-like securities designed to secure the Government a long-term return. As of 31 October 2021, no funds have been drawn down.”

In addition to this, the document also revealed that the financial implications of the measure for the budget are confidential and not for publication “due to commercial sensitivities.”

Nevertheless, the MYEFO notes that an additional $521.8 million over 20 years will be able to support the satellite-based augmentation system.

According to the document, “This funding will deliver significant benefits to regional and remote Australians, guaranteeing access to precise positioning even in areas without mobile or internet reception.”