The National Reconstruction Fund Corporation (NRFC) is making a $200 million hybrid note investment in ASX-listed cloud, cybersecurity, and telecoms provider Macquarie Technology Group (ASX: MAQ) to help ensure that critical digital infrastructure and information, including the data of everyday Australians, remains securely onshore.

The NRFC’s investment falls under its Enabling Capabilities Priority Area, which involves helping to deliver national capabilities that Australian companies and businesses need to compete and win in the emerging digital economy. The investment delivers on key parts of the NRFC mandate, delivering increased national resilience in the face of growing global uncertainty and creating high quality jobs.

Macquarie Technology Group was founded in 1992 by Australian brothers David and Aidan Tudehope. It provides sovereign cloud, cybersecurity services and AI infrastructure to customers including Australian businesses, critical infrastructure sectors, and government agencies. The company’s integrated technology stack – combining software, platform assembly and operations – enables customers to securely store, process and protect sensitive data within Australia.

Macquarie Technology provides secure cloud and cybersecurity infrastructure to a large number of Australian government agencies, including parts of government that handle the personal data of millions of Australians as well as other highly sensitive information.

The NRFC’s investment will support the company’s expansion of sovereign cloud services, the development of AI-enabled cybersecurity capability, and the fit-out of a new sovereign data facility. Macquarie Technology Group currently employs ~450 people, and the NRFC’s investment is expected to create 140 additional highly skilled jobs.

It also supports execution of the Federal Government’s National AI plan, which aims to deliver digital infrastructure to create an AI-enabled economy that is more competitive, productive, and resilient.

The NRFC has a mandate to invest across both debt and equity and to find new ways of financing businesses with innovative financing structures. The NRFC’s investment in Macquarie Technology will be provided by way of a first-of-its-kind hybrid note for an unrated company, combining both debt and equity features.

Quotes for use by the media

Senator the Hon Tim Ayres, Minister for Industry and Innovation and Minister for 
Science:

“This $200 million, first-of-its-kind, hybrid investment backs Australia’s digital resilience where private capital alone cannot.

“This deal shows the benefit of the NRF being able to use innovative finance to fill market gaps, crowd in private capital, and strengthen Australia’s economic resilience.

“This investment gives Australian businesses the confidence to safely harness the rapid growth of AI while making sure critical digital infrastructure and information, including the data of everyday Australians, remains securely onshore.

“This investment will create 140 high-skilled jobs in cybersecurity, AI and software engineering, backing the jobs of the future right here in Australia.”

NRFC CEO David Gall:

“Our investment in Macquarie Technology fits squarely within NRFC’s mandate by building the country’s digital industrial capability, enabling enhanced competitiveness and productivity for a wide range of Australian companies across multiple sectors of the economy.”

“NRFC’s investment will help to provide many small to medium sized Australian companies with the cybersecurity capability they need to compete and win work in areas where information security is a requirement for entry.”

“Investing in Macquarie Technology also strengthens Australia’s cybersecurity defences, providing Australian companies with the business continuity assurance they need to safely capitalise on the explosive growth in AI.”

“It ensures that mission critical digital infrastructure – as well as the data of millions of Australians – remains onshore and creates highly skilled local jobs in AI, cybersecurity, and software engineering.”

NRFC CIO Mary Manning:

“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.”

Macquarie Technology Group CEO & Co-Founder David Tudehope:

“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.”

[ENDS]

About the National Reconstruction Fund Corporation (NRFC)

The NRFC is Australia’s sovereign investor in industrial capability. It has $15 billion to invest through direct loans, equity investments and loan guarantees across seven priority areas of the Australian economy: renewables and low emissions technologies; enabling capabilities; defence; transport; value-add in resources; value-add in agriculture, forestry and fisheries; and medical science.

The NRFC’s role is to invest in Australian businesses and projects to deliver a more resilient Australia and ensure sovereign capability in areas of national significance. It works to transform capability, create high quality jobs and diversify Australia’s economy. The NRFC is a corporate Commonwealth entity, established by the National Reconstruction Fund Corporation Act 2023 (NRFC Act) in September 2023.

For more information, visit nrf.gov.au.

NRFC media contact: media@nrf.gov.au

About Macquarie Technology Group (ASX:MAQ)

We are Australia’s data centre, cloud, cyber security and telecom company for mid to large business and government customers. The way we do this is completely different from our competitors. We provide the best customer service in Australia as measured by Net Promoter Score.

Media Contact:
Oisin O’Callaghan
Watterson (for Macquarie Technology Group)
oisin.ocallaghan@watterson.com.au