$45m Arnott’s loan sparks questions over NRF’s innovation focus
Stakeholders are concerned the NRF is straying from its mission of attracting investment in innovative companies trying to scale new technologies.
Industry stakeholders warn the Albanese government’s $15 billion National Reconstruction Fund may be straying from its “original intention” after approving a $45 million loan to biscuit maker Arnott’s.
On Monday, the NRF said its debt investment in the company behind Tim Tams and Tiny Teddies formed part of a broader refinancing of $1.75 billion of debt maturing in 2026, arranged by KKR Capital Markets, Morgan Stanley and MUFG. Arnott’s has been a subsidiary of global private equity firm KKR since early 2020.
The decision sparked a sharp reaction from the federal opposition, which accused Labor of “picking winners” and labelled the deal a “bailout”. The NRF has rejected those claims.
The investment has also prompted industry accusations that the NRF lacks the risk tolerance required to support more innovative companies.
