BNZ Helps New Zealanders Make Their Businesses, Farms, and Homes Cleaner and Greener
New low-interest loans could be available from BNZ for businesses that invest in green technology like renewable energy, electric and hybrid transportation, or farmers who improve how they use water.
“Every day we hear from New Zealand business owners eager to grow their enterprises and invest in initiatives focusing on making their businesses and New Zealand communities more sustainable,” says BNZ Executive Customer Products and Services, Karna Luke.
“They’re passionate about embracing green technologies, are determined to reduce their carbon footprint, and are excited at the opportunity to electrify their transport. The BNZ's sustainable lending initiatives are meant to give our customers access to cheaper funding, which will help them do great things.
"Homeowners, whether first-time or second-time buyers or investors are frequently looking for a property that checks the sustainable home box." BNZ’s now working on finding ways to support customers with new low-cost home lending initiatives to install options like solar panels, double glazing or new insulation,” says Mr Luke.
The Reserve Bank of New Zealand (RBNZ) keeps giving banks access to its Funding for Lending Programme (FLP). FLP was set up during the COVID-19 pandemic as part of several tools to ensure New Zealand borrowers continued to get access to funds during periods of market volatility.
Utilising the FLP last year, the Bank of New Zealand established its Good to Grow programme to help customers navigate uncertain trading conditions by supporting them to invest in their businesses at low-interest rates.
Through Good to Grow, BNZ committed $900 million in loans to support businesses’ ambitions to go digital, develop new products, and increase sustainability and productivity.
“We’re recharging and evolving the programme with $1.4 billion in funding from the FLP that we’ll access in the coming weeks. These funds are all about accelerating our customers’ green ambitions, whether they be in housing or renewable energy, including EVs, as well as supporting the growth of Māori business and New Zealand’s army of small and medium enterprises.
“BNZ’s soon-to-be-launched Green purpose business loan is a great example. It’s designed to support customers with investment initiatives in renewable energy, low emission transport, and the protection of a healthy eco-system,” says Mr Luke.
While BNZ has several other green lending-related initiatives at various stages of development, it has also led the way with both its corporate Sustainable Linked Loans (SLL) and Derivatives, and by offering New Zealand’s first scalable on-farm SLL which is available to all New Zealand farmers. The SLL offers interest cost savings for achieving environmental and social targets. Farmers can choose from a range of options they want to tackle, but emissions reduction is non-negotiable.
With FLP funding available these initiatives will zero in on delivering positive environmental, social, and governance-based outcomes for our customers and the communities that our customers support.
“This is all about our customers, current and new to BNZ, who have ideas and ambitions – whether they be big or small, who are determined that their next investment will find a way to make their businesses, their homes, and our communities more sustainable and resilient.
“We are ambitious that BNZ’s lower costs and sustainability-focused lending will be the catalyst that kicks New Zealanders' great green ideas into gear,” says Mr Luke.
Source: BNZ
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