Photo: 123rf
Property developers are taking advantage of cut-rate loans for investment in projects that meet sustainable development goals, Westpac NZ says.
Westpac has provided more than $440 million through its sustainable business loan to support property projects that were either being built sustainably or aimed at delivering positive environmental or community outcomes.
Westpac introduced the programme in June 2023 and committed to lend at least $1 billion over the next three years to support social and affordable housing, offered at a 20-basis-point discount to the regular rate.
The bank's institutional and business banking managing director Reuben Tucker said: "Doing our bit to power a lower emissions and resilient economy is incredibly important to us, so we're also focused on financing initiatives that deliver better environmental outcomes.
"We knew there was a demand for this kind of solution and the uptake from the property sector in particular has been fantastic."
Businesses received a discount on the loan interest margin if the building or other asset met the sustainable business loan criteria.
Loans had been advanced to support small and large scale developments.
Tucker said supporting sustainable property development would continue to be a focus for Westpac.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.