Hawaiki is a 15,000 km fibre optic deep sea cable linking Australia, New Zealand, the Pacific and United States
Constructed over 27 months, the submarine cable has a design capacity of 43.8 Tbps, equivalent to streaming 1.7 million 4k TV streams simultaneously
Equity investment in the Hawaiki entities and its service company
Board representation
Investment fundamentals
Rapid growth in demand driven by the Internet of Things and growth of content and cloud providers
Provides diversity and redundancy in network connectivity
Diversification benefits relative to other traditional infrastructure sectors
A right to participate in future Hawaiki-led cable investments
Key risks and mitigation
Pricing on a per unit of data basis declines with technology improvements and competition, mitigated by strong growth in demand
Lumpiness in cash flows due to the sale of Indefeasible Right to Use (IRU) contracts in addition to recurrent leases, mitigated by the investment being structured defensively with upside exposure
Equity investment post completion, mitigating construction risks and difficulty of obtaining permits in different jurisdictions, which is a barrier to entry
