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ANZ, CEFC pledge $200m to SME net-zero transition

by snichols11 minute read
ANZ, CEFC pledge $200m to SME net-zero transition

The bank has invested further into its funding program with the clean energy outfit, continuing the recent momentum of lenders incentivising sustainable borrowing.

The Australia and New Zealand Banking Group (ANZ) first partnered with the government’s Clean Energy Finance Corporation (CEFC) in December 2017, with the lender spending $150 million to provide cheaper asset loans for energy-efficient businesses. 

At its announcement, the original venture offered a 70-bp reduction for customers on the standard asset finance rate for new assets up to $5 million that met CEFC energy-efficiency requirements.

In August 2019, the big four lender confirmed it would invest an additional $100 million into the green-focused incentive. 


Under this latest measure, which will see an additional $200 million provided from both the bank and the CEFC, business customers will have access to a 50-bp rate discount on asset finance loans of up to $5 million “for eligible energy efficient related assets and projects”. 

Both ANZ and the CEFC will cover this 0.50 per cent discount evenly. 

Further, the lender has said now “opportunities in the recycling sector are also available”

ANZ managing director of commercial and private banking, Isaac Rankin, commented that the scheme will allow the bank’s customers to grow their business “in a sustainable way”.

“We are seeing many of our customers are changing the way their businesses operate, moving towards a more sustainable future,” Mr Rankin said.

“Whether it be an electric truck or solar panels, we want to give Australian businesses access to finance, services and advice to invest in equipment which will help them shift to low carbon business models and operations that put them on a path to net zero emissions.”

CEFC chief executive Ian Learmonth said: “Small to medium businesses are a critical part of Australia’s economy. As the cost of energy and other inputs continues to rise, it is important to help them access the benefits that renewable energy, battery storage and energy efficient equipment can deliver.”  

Mr Learmonth added that, in the time that the CEFC has worked with the ANZ, the government-owned entity has seen “strong interest” from small and medium-sized enterprises in “using clean energy technologies to reduce their carbon footprint and improve their energy efficiency”.

This increased investment from ANZ is a development that reflects a wider trend of lenders offering reduced rates for green-focused loans. 

Earlier this year in April, the Commonwealth Bank announced it would offer a lower rate for properties that met a certain sustainability threshold.

One month later, Westpac unveiled its first hybrid or electric vehicle loan in its history, offering reduced vehicle loan rates for customers purchasing a sustainable auto.

In June, Bank Australia announced it would be offering a reduced rate for sustainable homes, with the CEFC said to be contributing $30 million to help actualise the initiative.  

[Related: Westpac introduces lower rates for green cars]

anz bank signage ta jyiiat



Sam Nichols is a journalist at The Adviser and Mortgage Business.


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