Kiwi Group Capital (KGC) today announced that it has invested $225 million into its wholly owned subsidiary, Kiwibank, to further accelerate the growth of the largest New Zealand-owned bank.
KGC Chair, David McLean, said the investment represents the next step in the strategic portfolio reshaping actions taken by the owners of Kiwibank over the past year – namely, divesting Kiwi Wealth and Kiwi Insurance to focus on its core banking business.
“This investment generates long-term value for shareholders and is well-aligned with KGC’s strategic objective to help Kiwibank provide a competitive banking alternative for New Zealanders.”
Mr McLean said the investment was funded from the proceeds of the sale of Kiwi Wealth to Fisher Funds late last year.
Kiwibank Chief Executive, Steve Jurkovich, said today’s announcement represents a significant investment and expression of shareholder confidence in the largest New Zealand-owned bank.
“This capital injection will enable Kiwibank to continue to deliver on its growth ambitions by supporting Kiwi with their home ownership aspirations and backing local businesses to thrive,” said Mr Jurkovich.
“Kiwibank has a unique role to play in the New Zealand banking sector and this is another important step in strengthening our position further in the market.”
About the transaction:
On 31 July, KGC subscribed to an additional $225 million of common equity share capital issued by Kiwibank. This represents the reinvestment of the proceeds from strategic portfolio actions undertaken last year, specifically the sale of Kiwi Wealth Limited.
About Kiwi Group Capital:
Kiwi Group Capital was established in November 2022 as a holding company to acquire and oversee the Crown’s investment in its subsidiaries Kiwibank and NZHL, and indirectly through those subsidiaries, to carry out and develop their businesses, including the provision of banking and financial services. In March 2023, KGC amalgamated with Kiwi Group Holdings Limited the previous 100% shareholder of Kiwibank. Kiwi Group Capital is a Public Finance Act 1989, Schedule 4A company. Find out more.
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 2023 Corporate Reputation Index and the only bank in the top 20. Find out more.