New Zealand government transfers Kiwibank assets to new company

New Zealand’s Finance Minister Grant Robertson speaks about the ‘welfare’ budget in Wellington, New Zealand May 30, 2019. REUTERS/Charlotte Greenfield/File Photo

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WELLINGTON, Aug 22 (Reuters) – New Zealand’s government said on Monday it had transferred Kiwibank’s assets to a new state-owned company as the lender no longer fits into the long-term plans of the two state-owned entities who currently own it.

Kiwibank, which is New Zealand’s fifth-largest retail bank, was owned by state-owned entities New Zealand Post, Accident Compensation Corporation and sovereign wealth fund New Zealand Superannuation Fund.

The government said in a statement that the transaction valued at NZ$2.1 billion will be through a transfer of assets from the entities to a newly incorporated company which will also be state-owned.

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He said the government would fund the purchase through a multi-year capital allocation. The purchase was already part of the borrowing program published in 2022.

“The government is fully committed to helping Kiwibank be a true competitor in the banking industry – ensuring that the bank has access to capital to continue to grow on a commercially sustainable basis and to provide a viable and competitive to New Zealanders,” said New Zealand. Finance Minister Grant Robertson.

($1 = 1.6194 New Zealand dollars)

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Reporting by Lucy Craymer, editing by Deepa Babington

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