Coalition slams NRF support for Arnott’s debt refinancing as a 'bailout'
Make us a preferred source
Make us a preferred source on Google
More news: Federal shadow minister for Industry and Innovation Alex Hawke has described the National Reconstruction Fund’s participation in the Kohlberg Kravis Roberts-owned Arnott's Group $1.75 billion debt refinancing as a “bailout in all but name”.
Hawke said National Reconstruction Fund’s debt investment “is not fresh capital to expand domestic production, but rather a refinancing of existing debt — a government bailout in all but name”.
In addition to a $36 million debt investment made to Patties Food Group, which produces brands like Four’N Twenty pies and pasta sauce Leggo’s, Hawke chastised the NRF for investing in foreign-owned companies.
"Something is very rotten in our economy if a business in Australia can't sell meat pies and Tim Tams to Australians without taxpayer subsidies," Mr Hawke said.
"Labor is pouring money into foreign-owned companies while Aussie manufacturers go to the wall because of the government’s failure to deliver reliable and affordable energy.
"The Future Made in Australia agenda is swiftly becoming a Future Bailed Out in Australia."
NRF loans $45m to Arnott’s under $1.8b refinancing
The news: The National Reconstruction Fund Corporation has made a $45 million debt investment in the Arnott’s Group under broader debt refinancing aimed at supporting production growth and the global expansion of the biscuit-maker’s brands.
The refinancing of $1.75 billion of debt maturing in 2026 was arranged by KKR Capital Markets, Morgan Stanley and MUFG.
The numbers: This is the third debt investment made by the NRF which has now made 17 investments overall, totalling $1.02 billion.
The context: Arnott’s currently employs more than 2,500 workers in Australia across five facilities. The food manufacturer is preparing to expand production and bring its brands to the global market.
The company’s Tim Tam chocolate biscuit brand is already stocked in all major British supermarkets and has sold more than five million packs since launching in the UK in April 2024, beating expectations according to the NRF.
What they said: “Arnott’s is a great Australian company, and its products are a source of pride and enjoyment for so many Australians,” NRFC CEO David Gall said.
“So many of us have taken a pack of Tim Tam biscuits with us when we set out on travels across the globe. Taking such an iconic brand to international markets is something that is good for Australia and which the NRFC is excited to play a part in.”
The source: NRF media release
