Macquarie Technology Group Limited (ASX: MAQ) (the “Company”) today announced that it has secured a A$200m hybrid investment from National Reconstruction Fund Corporation (NRFC). The NRFC is a sovereign investor established by the Australian Government to invest in Australian businesses to support nationally significant technological innovation, digital infrastructure, defence, and national security. It works to transform industrial capability, create high quality jobs and diversify Australia’s economy.
The proceeds of the issue will be used for the development of sovereign, secure digital infrastructure and cyber security services with strategic product development initiatives focused on its Cloud Services and Government (CS&G) business segment supporting accelerated use of sovereign cloud services and AI by Australian government agencies, the Department of Defence, defence industry, critical infrastructure sectors, and Australian businesses.
Under the deal, the Company will be issued A$200 million of perpetual, callable subordinated, unsecured and non-convertible securities (the “Securities”) by or before 01 March 2027.
This investment by NRFC as a long-term, strategic partner, enhances the Company’s balance sheet flexibility through an efficient, non-dilutive form of capital to support the Company’s capability development initiatives focused on its CS&G business unit.
David Tudehope, Chief Executive said, “We are delighted to partner with NRFC and secure this investment, which provides long-term capital to support our growth initiatives while providing additional financial flexibility and diversification of our funding sources.
“This new source of capital enables us to expand our role as a provider of secure digital infrastructure and cyber security, delivering significant benefit to the Australian economy over time.”
NRFC CIO Mary Manning said, “The NRFC has the ability to provide flexible capital and invest across the capital stack. This investment is structured as a highly innovative, first of a kind arrangement for an unrated company which is unique in local capital markets.
“Our investment provides Macquarie Technology with the financing it needs now to scale up its sovereign cloud and cybersecurity businesses, while helping to position the company as an attractive partner for private capital investment in the future.”
Since 2020 the Group has invested to achieve and maintain certifications and clearances needed to support Australian Government customers. It is the only company to have achieved the highest level of certification by the Australian Government for both Cloud Services and Data Centre facilities under the Government’s Hosting Certification Framework.
Similarly, since 2022 the Group has invested to build out its Security Operations Centre (SOC) capabilities, significantly expanding its cyber security offering. That has since grown to integrate over 90 SOCs servicing Australian businesses, critical industry, and government sectors.
