NZ in line for IBM’s $1.67 billion infrastructure fund

Attention any local government or private player searching for funds for fibre-to-the home: while most big companies are asking for a cash hand-out, IBM is offering to give some back.

The US-based tech giant this morning announced it is making $US1.1 billion ($1.67 billion) available for “smart infrastructure” investments around Asia Pacific. There is no allocation by country. If New Zealand organisations put forward the best ideas first, they could, in theory, bag the majority of the low-interest, easy term cash.

The package is part of a broader $US3 billion ($NZ4.5billion) pool for financing economic stimulus projects in Europe and Asia Pacific.

On April 30, IBM pledged to make $US2 billion ($3.04 billion) available for US infrastructure projects, making its total finance offer $US5 billion ($NZ7.6 billion).

Brett Vincent, general manager, IBM Global Financing, A/NZ, will head the programme locally.

The company has pledged “low rates and flexible finance options”, including deferred payment, for smart infrastructure projects such as traffic control and smart electricity grids, health IT upgrades, and projects awaiting central government funding. Local government authorities and large corporate customers are eligible.

NBR suggests that any local or regional government authority - or bank-squeezed infrastructure player - looking to make a local fibre company pitch under the government’s broadband investment initiative check out Big Blue’s offer.

Mr Vincent told NBR that the size of a project, the credit-worthiness of an organisation and any related government funding would be just as important as size. But as a general rule the company will be looking at organisations with 100 or more people.

He sees IBM playing a role in kick-starting projects that would otherwise have to wait for government stimulous programmes.