Kiwibank’s parent company, Kiwi Group Capital Limited (KGC), has decided not to proceed with the previously signalled equity capital raise.

The changes to the Reserve Bank of New Zealand’s capital requirements, combined with Kiwibank’s recent highly successful $400 million Tier 2 capital raise at an attractive price, means that Kiwibank can now continue its strong growth without the need for additional equity.

While prospective investor feedback has been positive on Kiwibank’s performance and strategy, it appeared unlikely by the time of the Reserve Bank’s announcement that terms would be able to be agreed with prospective investors that would meet KGC’s objectives for the transaction.

Kiwibank remains committed to its Purpose of Kiwi making Kiwi better off and building a more dynamic, competitive banking sector that works harder for New Zealanders.

Additional notes

• Reserve Bank capital changes: The Reserve Bank of New Zealand has revised its capital settings, reducing equity requirements for banks. These changes acknowledge that previous settings disproportionately impacted smaller banks and help create a more level playing field, consistent with recommendations from the Commerce Commission’s market study and the Finance and Expenditure Committee’s review into banking. Kiwibank has long advocated for a more proportionate framework, but when the capital raise process was initiated, it was unclear whether these settings would be reviewed. The new rules, combined with the successful Tier 2 capital raise, mean Kiwibank now has sufficient capital to maintain its growth strategy and continue challenging the larger banks.
• Successful Tier 2 capital raise: In December 2025, Kiwibank issued NZ$400 million of unsecured subordinated notes (Tier 2 Capital) on the NZX Debt Market. This transaction strengthens Kiwibank’s regulatory capital position and demonstrates strong investor confidence in its strategy.

About Kiwibank

Kiwibank is a Purpose-led organisation that has modern, Kiwi values at heart and keeps Kiwi money where it belongs – right here in New Zealand. As a Kiwi bank, with more than a million customers, our trusted experts are focused on supporting Kiwi with their home ownership aspirations and backing local business ambitions, so together we can thrive here in Aotearoa and on the world stage. Kiwibank is the #1 bank in Kantar’s 2025 Corporate Reputation Index and the only bank in the top 15 – and has been awarded the Roy Morgan Customer Satisfaction Award – Major Bank of the Year 2025.

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