CHORUS LIMITED — Capital/Financing Update 2016

Mar 29, 2016

==> picture [139 x 47] intentionally omitted <==

Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington 6140 New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

30 March 2016

Chorus lodges product disclosure statement for bond offer

Chorus has announced an offer of up to $300 million (with the ability to accept up to $100 million of oversubscriptions at Chorus’ discretion) of five year, unsecured, unsubordinated, fixed rate bonds maturing on 6 May 2021 to institutional investors and New Zealand retail investors. The offer is expected to open 14 April 2016 and to close on 4 May 2016.

The bonds are expected to be quoted on the NZX Debt Market and expected to be assigned a BBB rating by Standard & Poor’s and Baa2 by Moody’s.

Chorus has appointed ANZ and Westpac Banking Corporation (acting through its New Zealand branch) as Joint Lead Managers, and Bank of New Zealand, Deutsche Craigs, First NZ Capital, Forsyth Barr and Macquarie Capital, as Co-Managers in relation to the offer.

Full details of the offer are contained in the Product Disclosure Statement (PDS) which - - - was lodged today. The PDS is available through www.chorus.co.nz/nz retail bond offer or by contacting a Joint Lead Manager or the Co-Managers, and must be obtained by investors before they decide to acquire any bonds. There are restrictions on offering, issuing or selling bonds outside New Zealand, as set out in the Disclose Register www.business.govt.nz/disclose.

There is no public pool for the offer, with all of the bonds being reserved for clients of the Joint Lead Managers, Co-Managers, NZX participants and other approved financial intermediaries.

Interested investors should contact the Joint Lead Managers, the Co-Managers or their usual financial advisor for more details.

Joint Lead Managers

==> picture [121 x 37] intentionally omitted <==

==> picture [118 x 40] intentionally omitted <==

0800 269 476 0800 942 822

Co-Managers

==> picture [57 x 29] intentionally omitted <==

==> picture [132 x 15] intentionally omitted <==

==> picture [115 x 17] intentionally omitted <==

0800 248 017 0800 226 263 0800 005 678

==> picture [107 x 28] intentionally omitted <==

==> picture [108 x 24] intentionally omitted <==

0800 367 227 0800 742 737

ENDS

For further information: Andrew Hopkinson Treasurer Phone: +64 4 896 4014 Mobile: +64 (27) 249 5678 Email: Andrew.hopkinson@chorus.co.nz

Brett Jackson Investor Relations Manager Phone: +64 4 896 4039 Mobile: +64 (27) 488 7808 Email: Brett.Jackson@chorus.co.nz

==> picture [73 x 25] intentionally omitted <==