One of the assumptions that may be being made in this statement is funds can be borrowed for free, in a debt or equity setting. Whoever is lending/providing those funds does expect something in return.

Even a government that borrows, needs to pay something back with interest. And an investment by the way of shares the government makes needs something back roughly matching the interest rate too.

I don't really see an argument where a public setting is any more beneficial from what you're saying, if the international investor was the the treasury, it would still want something back by shareholder returns.