Fletcher Building is restructuring its financing arm, turning it into an investment vehicle that will own 20% of its New Zealand subsidiaries.
Currently, Fletcher Building Finance borrows from the public to fund entities within the company and is regarded as a non-bank deposit taker by the Reserve Bank.
Fletcher says this type of financing is no longer preferable following a rule change.
It will no longer be a lender, but instead an investor in Fletcher Building's New Zealand's assets.
The finance business will become a holding company called Fletcher Building Industries. It will buy 20% of the shares in Fletcher Building Holdings, which is worth about $3.42 billion.