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An announcement from Spark New Zealand Limited ( (AU:SPK) ) is now available.
Spark New Zealand has entered into a partnership with ASX‑listed Challenger Limited to establish a new receivables financing structure for the interest free payment plans it offers customers on mobile handsets and accessories. Spark will sell about NZ$240 million of existing IFP receivables to Challenger, using the proceeds to reduce net debt without materially affecting its net debt to EBITDAI ratio, and will also regularly sell future IFP receivables under an ongoing arrangement, improving working capital efficiency and enabling greater scale in IFP funding. The structure allows Spark to continue managing customer relationships, credit checks, collections, and device supply as usual, while freeing up capital to reinvest in its priority mobile business and supporting growth in flexible payment options that are increasingly important for customer acquisition and retention. Challenger gains access to a stream of high‑quality, resilient cash flows and further exposure to the growing whole‑loan asset class in New Zealand and Australia, reinforcing its funds management strategy.
More about Spark New Zealand Limited
Spark New Zealand is a major New Zealand telecommunications provider, with a core focus on mobile services and related devices. The company offers mobile connections, handsets, and accessories, and uses interest free payment plans as a key tool to attract and retain customers in an increasingly device-centric and price-sensitive mobile market.
Average Trading Volume: 1,220,276
Technical Sentiment Signal: Strong Sell
Current Market Cap: A$3.75B
Learn more about SPK stock on TipRanks’ Stock Analysis page.