New Zealand’s government transfers Kiwibank assets to new company

By Lucy Craymer

WELLINGTON (Reuters) – New Zealand’s authorities mentioned on Monday it had transferred Kiwibank’s belongings to a brand new state-owned firm, for the reason that lender not match inside the long-term plans for 2 state entities that presently personal it.

Kiwibank, which is New Zealand fifth-largest retail financial institution, was owned by state-owned entities New Zealand Submit, Accident Compensation Company and sovereign wealth fund New Zealand Superannuation Fund.

The federal government mentioned in an announcement that the transaction valued at NZ$2.1 billion shall be finished by a switch of belongings from the entities to a newly integrated firm that may even be owned by the state.

It mentioned the federal government will fund the acquisition by a multi-year capital allowance. The acquisition was already a part of the borrowing programme printed in 2022.

“The Authorities is totally dedicated to supporting Kiwibank to be a real competitor within the banking trade – making certain the financial institution has entry to capital to proceed to develop on a commercially sustainable foundation and provide a viable and aggressive different for New Zealanders,” mentioned New Zealand Finance Minister Grant Robertson.

($1 = 1.6194 New Zealand {dollars})

(Reporting by Lucy Craymer, enhancing by Deepa Babington)