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Banking giant ANZ (ASX: ANZ) has secured a $2 billion decade-long guarantee from the Australian Government in a bid to bolster the company’s operations in the Pacific.
As part of the agreement, ANZ will invest an additional $50 million in its Pacific banking systems to enhance its digital banking offering and support ongoing operations in the region.
The bank will also continue to offer fee-free international money transfers made via ANZ retail digital channels into the Pacific to support the flow of funds into the region.
The Australian Government considers the risk of ANZ needing to draw on the $2 billion guarantee to be “very low”, signalling confidence in the bank’s stability in the Pacific.
ANZ CEO Shayne Elliott says that while doing business in the Pacific can be complex, the bank is committed to its roles in advancing economic development, critical infrastructure and payment networks across the region.
“This arrangement with the Australian Government highlights our shared commitment to continuing to provide access to safe, trusted banking services in the Pacific Island region. ANZ has been in the Pacific for more than 140 years and it continues to be an important part of our international network,” says Elliott.
“We will continue to connect Pacific customers to trade and investment opportunities, as well as providing links into our home markets of Australia and New Zealand, and across our international network in Asia, the Middle East, Europe and the United States.
“While the guarantee is not material for ANZ at group level, the arrangement will support a more resilient and sustainable ANZ Pacific business, for the future of the region.”
Based in Melbourne, ANZ employs more than 1,200 across the Pacific region and has invested approximately $95 million in buildings, systems and technology over the last five years.
The bank has operations in Fiji, Papua New Guinea, Samoa, Vanuatu, Tonga, Solomon Islands, Timor-Leste, Kiribati and the Cook Islands.
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