Spark New Zealand (ASX:SPK) announced a new receivables financing partnership with ASX-listed financial services firm Challenger (ASX:CGF) to support its interest-free payment plans for mobile handsets and accessories.
Under the arrangement, Spark will sell approximately $240 million of existing IFP receivables to Challenger in the first half of FY26, with proceeds used to reduce net debt, while future IFP receivables will be sold on an ongoing basis to fund continued growth in the offering.
Spark said the structure will reduce working capital on its balance sheet, improve capital efficiency and return on invested capital, and support mobile customer acquisition and retention, without changing the customer experience or Spark's control over credit checks, collections, or device supply.