KiwiBonds commentary17 August 2026
Chorus subordinated bonds trade at a yield premium
CNU040's low coupon reflects the low-rate environment at issue; current market yields are materially higher.
About this bond
The Chorus CNU040 bonds are retail structured/subordinated bonds quoted on the NZX Debt Market under ticker CNU040.
They rank behind senior and unsecured creditors of Chorus for payment if the issuer is wound up, and interest payments may be deferred. This means they carry more risk than a senior bond and usually trade at a higher yield than the 2.51% coupon.
Because this is an existing listed bond, investors buy at the current market price rather than subscribing to a new offer. The yield to maturity will differ from the 2.51% coupon rate shown.
Security
Subordinated / structured
Coupon
2.51% p.a. (fixed)
Listing
NZX Debt Market (CNU040)
Interest payments
Semi-annually, in arrears
Maturity
2 December 2030
Tax
RWT deducted at your elected rate
Where the money goes
Fibre network completion
Final build and optimisation of the UFB fibre footprint, including rural and regional rollout completion.
Copper to fibre migration
Funding customer migration programmes and legacy copper network decommissioning.
Network resilience
Upgrading backhaul, exchange capacity and disaster recovery infrastructure.
Refinance existing debt
Repaying shorter-dated bank facilities and fixed-rate notes with new long-term bond funding.
Bond return calculator
Estimate coupon payments and after-tax returns at 2.51% p.a.
Per coupon payment
$94
Gross interest per year
$376
Total gross over 5 yr
$1,882
RWT deducted (33%)
- $621
Total after tax
$1,261
If coupons reinvested
$1,999
Indicative only. Figures assume the bond is held to maturity and the coupon rate does not change.
General market commentary
The following is illustrative general commentary about the New Zealand fixed-income market prepared by KiwiBonds.co.nz. It is not news reporting, is not attributed to any news organisation or issuer, and is not a forecast. Past or current market conditions are not a guide to future returns.
KiwiBonds commentary10 August 2026
Fibre revenues stabilise as copper disconnections slow
Analysts note regulated fibre revenues are providing predictable cash flows that support bond-style funding.
KiwiBonds commentary3 August 2026
Telecom infrastructure bonds attract income investors
Network assets are drawing investors, but subordinated structures carry higher risk than senior secured paper.
KiwiBonds commentary26 July 2026
Rural broadband completion on track
The final phase of the UFB programme is expected to extend fibre reach to more regional communities.
Key risks
- Credit risk: repayment depends on Chorus meeting its obligations.
- Subordination risk: CNU040 ranks behind senior and unsecured creditors for payment if Chorus is wound up.
- Interest deferral risk: coupon payments may be deferred under the bond terms.
- Regulatory risk: fibre pricing and access terms are set by the Commerce Commission and may change.
- Technology risk: shifts in wireless or satellite broadband could affect long-term network demand.
- Liquidity risk: you may not be able to sell on market at the price or time you want.
- Interest rate risk: if market rates rise, the market value of the bond may fall below face value.
Frequently asked questions
How often is interest paid?
Every six months in arrears, in NZ dollars, with RWT deducted at your elected rate.
What is the minimum investment?
NZX-listed bonds can typically be bought in board lots through a broker. Use our form and a broker will confirm the minimum parcel size.
Is this covered by the Depositor Compensation Scheme?
No. The DCS covers deposits with licensed NZ deposit takers. Corporate bonds are not covered.
What does subordinated mean?
If Chorus is wound up, subordinated bondholders are paid after senior and unsecured creditors. This increases risk compared with senior bonds.
How do I apply?
Register your interest using the form on this page and a broker will send the current offer document, price and settlement details.
Chorus NZ and all other company names, brands and logos referred to on this page are the property of their respective owners and are used for identification and comparison purposes only. KiwiBonds.co.nz is an independent website and is not affiliated with, endorsed by, sponsored by or acting as an agent for any issuer named. Product details, indicative rates, offer dates and market commentary on this page are illustrative summaries only, are not sourced from or approved by the issuer, and must not be relied on when making an investment decision.