Big discounts for businesses as ANZ launches Business Green Loan

ANZ Bank New Zealand has launched a Business Green Loan offering the lowest advertised floating rate in the market for a green loan.

The loan gives eligible customers a special floating rate of 3.85% pa, which is a 1.50% discount on the current floating base rate.

It can be used to fund initiatives that support energy efficiency, renewable energy, sustainable land and water use and the building, renovating or purchasing of green buildings.

Business customers can borrow up to $3 million at the special floating rate, and can re-finance existing business loans that meet the ANZ Business Green Loan eligibility criteria.

It is currently the only advertised green loan product in the market which is available to Business customers and linked to the Green Loan Principles.

ANZ New Zealand CEO Antonia Watson said Kiwi businesses understood the need to shift to more sustainable practices and the opportunity this brings.

“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. An important part of our role at ANZ is to support this shift.

“We’ve led the way with sustainable finance for our Institutional customers and we’re proud to now offer a Business Green Loan to support more businesses wanting to invest in sustainable practices.”

ANZ New Zealand Business Banking Managing Director Lorraine Mapu said ANZ banks the largest share of New Zealand businesses and for many cost was a barrier when it came to investing in sustainability.

“Privately-owned businesses are the backbone of our economy; we wanted to tailor this loan in a way that supports their sustainability ambitions – no matter how big or small.

“As with any investment, making your business more sustainable comes with a cost. We want to remove some of that cost barrier and, by doing so, help customers see the benefits sooner,” Ms Mapu said.

The ANZ Business Green Loan will also support agri-business customers looking to diversify and future-proof their operations.

“Many of our agri customers have invested in upgrading farming systems to preserve water quality and are now looking to how they can enhance biodiversity and considering carbon sequestration through planting.

“This loan supports those ambitions.

“Acting on sustainability brings wider business benefits through staff and stakeholder engagement; together with a positive impact on the environment. We hope an ANZ Business Green Loan will add to the sustainability story of our customers,” Ms Mapu said.

ANZ’s Business Green Loan is linked to the Loan Market Association’s Green Loan Principles and independently reviewed by Ernst & Young (EY) [1] for alignment to the principles.

The ANZ Business Green Loan is a 1.50% discount on the Business Term Loan floating base rate and subject to change. The loan will be available to customers from 2 September 2022.

The loan can be used for:

• Energy efficiency – purchase and installation of eligible energy efficiency products in commercial buildings or industrial energy replacement projects. This includes heat pumps, biomass boilers, double glazing, insulation, air conditioning and lighting;

• Renewable energy – solar installations;

• Green buildings – building, renovating or purchasing a commercial building that meets certain New Zealand Green Building Council or NABERSNZ performance ratings;

• Sustainable land use – planting projects that improve environmental outcomes through afforestation, reforestation and/or preservation of natural landscape;

• Sustainable water and wastewater – installation of products that improve water quality, wastewater and effluent treatment. This includes fencing, bridges or culverts for stock exclusion, feed pads and effluent ponds.

For sustainable land use:

• Planting projects which change a property’s land use by more than 15 per cent, measured by effective area, are excluded.

• Afforestation using permanent exotics that are not intended for harvest at maturity are excluded.

For more information on the ANZ Business Green Loan and eligibility criteria go to our website.

For media enquiries contact Briar McCormack 021 2801173

[1] ANZ sought an independent review of the Business Green Loan by way of limited assurance from EY, which includes (but not limited to) reviewing loan documentation, compliance with the Green Loan Principles and detailed testing. EY conducts limited assurance engagements in accordance with the International Standard on Assurance Engagements (New Zealand) (ISAE (NZ)) 3000 (Revised). EY provided limited assurance of this product framework against the requirements of the Loan Market Association’s Green Loan Principles (Feb 2021).

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