Helping New Zealanders make their businesses, farms and homes cleaner and greener

Businesses investing in green technologies through renewable energy, electric and hybrid transport or farmers improving water efficiency are all examples of initiatives that could access new low-interest loans from the BNZ.

“Every day we hear from New Zealand business owners who want to grow their businesses and invest in initiatives to make their New Zealand businesses and communities more sustainable,” says Karna Luke, BNZ Executive Customer Products and Services.

“They are passionate about adopting green technologies, are determined to reduce their carbon footprint and are enthusiastic about electrifying their transportation. BNZ’s suite of sustainable lending initiatives is designed to deliver great results for our clients through access to lower cost finance.

“Homeowners too, whether they are first or next buyers or investors, are often looking for a property that ticks the sustainable home box. BNZ is currently working to find ways to support customers with new low cost home loan initiatives to install options such as solar panels, double glazing or new insulation,” says Mr Luke.

The Reserve Bank of New Zealand (RBNZ) continues to offer banks access to its Funding for Loans Program (FLP). The FLP was introduced during the COVID-19 pandemic as part of a number of tools to ensure New Zealand borrowers continued to have access to funds during periods of market volatility.

Using the FLP last year, Bank of New Zealand set up its Good to Grow program to help customers navigate uncertain business conditions by helping them invest in their businesses at low interest rates.

Through Good to Grow, BNZ has committed $900 million in loans to support companies’ ambitions to go digital, develop new products and increase sustainability and productivity.

“We are reloading and scaling the program with $1.4 billion in FLP funding that we will be accessing in the coming weeks. These funds are aimed at accelerating our clients’ green ambitions, from housing to renewable energy, including electric vehicles, as well as supporting the growth of Maori businesses and the New Zealand military. small and medium enterprises.

“BNZ’s soon-to-be-launched green business loan is a great example of this. It is designed to support customers in their initiatives to invest in renewable energy, low-emission transport and the protection of a healthy ecosystem,” says Mr. Luke.

While BNZ has several other green loan initiatives in various stages of development, it has also led the way with its Sustainable Linked Business Loans (SLLs) and derivative products, and offering the first scalable on-farm SLL of New Zealand which is available to all New Zealand farmers. The SLL offers savings on interest charges to achieve environmental and social goals. Farmers can choose from a range of options they want to tackle, but reducing emissions is non-negotiable.

With FLP funding available, these initiatives will focus on achieving positive environmental, social and governance-based outcomes for our customers and the communities our customers support.

“It’s about our customers, current and new to BNZ, who have ideas and ambitions – whether 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-cost, sustainability-focused loans will be the catalyst that kick-starts New Zealanders’ big green ideas,” said Mr Luke.

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