Govt greenlights Kiwibank raising $500m ahead of eventual float

Finance minister Nicola Willis announced the decision, saying that all the capital raised would be used to fund Kiwibank's future growth with no return of capital to the Crown.

“The change will enable the New Zealand-owned bank to more vigorously compete against the big four Australian-owned banks,” Willis said.

Long-term, the most accessible source of additional capital for Kiwibank “is likely to be through a public share offering,” Willis said.

“However, Kiwibank will not be ready for this until its current digital transformation is completed – expected by 2028 – so no decision on an initial public offering will be made in this term of government,” she said.