Another bank introduces green initiative

AUCKLAND: ANZ is the latest bank to offer discounted loans to businesses that want to fund green initiatives.

Businesses will be able to borrow up to $3 million at a floating rate of 3.85%.

The rate is a 1.5percentagepoint discount to its normal floating rate, for initiatives supporting energy efficiency, renewable energy, sustainable land and water use and building, renovating or buying green buildings.

Borrowers will also be able to refinance existing loans at the lower rate if they meet the criteria.

ANZ New Zealand chief executive Antonia Watson said businesses understood the need to shift to more sustainable practices.

‘‘Whether meeting changing consumer preferences or regulatory requirements, reducing emissions or increasing efficiency, sustainability is integral to the way our customers will have to operate in the future.’’

ANZ is not the only bank to launch green business loans.

Last month, Kiwibank said it would start offering businesses loans for sustainability initiatives at discounted rates from September 26.

Kiwibank head of sustainable finance Tom Williams said interest rates on sustainable loans might be about 50 to 100 basis points lower than rates on regular business loans.

Kiwibank said it was committed to delivering $100 million in sustainable finance in 2023, and $2 billion by 2030.

In July, Westpac announced it was piloting sustainable agribusiness loans with three farmers.

The loans required customers to meet the Sustainable Agriculture Finance Initiative guidance. That included to reducing emissions and delivering more sustainable outcomes in terms of water, waste, pollution and ecosystems. —