7 Oct 2022

Kiwibank aims for $100m in sustainable business loans this financial year

11:22 am on 7 October 2022
Part of Kiwibank's new look as the bank unveils a new logo and digital banking services.

Photo: Kiwibank

State-owned Kiwibank is looking to help reduce carbon emissions with $100 million in small business loans this financial year.

The bank has made $50m in loans over the past year or so through its sustainable finance initiative with a long-term goal to lend small businesses at least $2 billion by 2030.

Small businesses could apply for any size loan for such things as solar panels, an electric vehicle or other measures aimed at reducing carbon emissions, such as a recycling project.

Kiwibank head of sustainable finance Tom Williams said small businesses' efforts to reduce emissions would be rewarded with a discount on the lending rate of perhaps 50 to 100 basis points depending on the value and purpose of the loan.

The programme was also seen as a win for Kiwibank.

"I think a big thing for us is really raising awareness in the market for Kiwibank as a business bank," he said, adding the sustainable finance initiative was a relatively small part of its business lending, but was expected to grow over time.

"We do expect over time to see more and more focus on lending to sustainable activity, because of this consumer demand because of this changing regulatory environment in New Zealand."