ASB Commits $100 Million In Low-cost Green Loans To Help Farmers Tackle Environmental Impact

Wednesday, 16 June 2021, 8:58 am
Press Release: ASB Bank

• Kiwi farmers wanting to boost their climate resilience and make a positive difference to the environment are set to benefit from ASB’s new Rural Sustainability Loan, which offers a market-leading 2.25% p.a. variable rate for sustainable farming improvements.

ASB rural customers can now tap into discounted lending to take their farm sustainability to the next level, with funding available for conservation and biodiversity restoration, and projects to drive the switch to renewable energy, prevent pollution and waste, cut emissions, and promote healthy soil, ecosystems, waterways and animal welfare.

The new offering follows ASB’s recently announced Back My Build loan, which encourages Kiwis to boost housing supply with a market-leading rate for new builds. Both initiatives make use of the Reserve Bank of New Zealand’s Funding for Lending scheme, as ASB honours its commitment to use the low-cost funds for productive lending to benefit all Kiwis.

ASB Executive General Manager for Business Banking Tim Deane says the Rural Sustainability Loan will help future-proof two of New Zealand’s greatest assets: our farmers and our land.

“Farmers tell us climate change and regulatory pressure are big issues keeping them up at night. That’s why we’re digging in and doing more for Kiwis who want to go beyond compliance basics and drive change that makes a deeper difference for their farm and ultimately the environment.

“Already our farming customers have invested more than $120 million to plant native trees, install environmentally-friendly effluent systems and fence off waterways – and we know many want to do more. Our goal is for our new sustainability loans to back $100 million in green upgrades over the next five years, so New Zealand can continue to lead the world in efficient and profitable farming and command a premium for Kiwi products.”

Applications for the ASB Rural Sustainability Loan are now open and the variable rate will be available for up to five years from when the customer makes their first draw down. The variable rate means customers are free to make lump sum payments or fix their rate at any time.

“Climate change is a critical issue for New Zealand. And whether it’s navigating shifting consumer expectations, or the reality of changing weather conditions on their farm, we know ASB has an opportunity to help our customers get ahead of their sustainability challenges.

“We’re proud of the work many farmers have already done and are excited to be offering this sharp rate to encourage more to get stuck into meaningful environmental improvements. From solar power for the milk shed, precision fertilisation or changing pasture or herd genetics to reduce methane emissions, there’s so much we can do to make a real difference for farmers while supporting a more sustainable rural sector in the longer term.”

More information on ASB’s Rural Sustainability Loan can be found on the ASB website at https://www.asb.co.nz/business-loans/rural-sustainability-loan.html

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