1 00:00:03,560 --> 00:00:07,000 Speaker 1: Digging through the spin to find the real story. 2 00:00:07,280 --> 00:00:07,480 Speaker 2: Ory. 3 00:00:07,720 --> 00:00:12,080 Speaker 1: It's Heather Dupas on drive with one New Zealand. Let's 4 00:00:12,119 --> 00:00:13,720 Speaker 1: get connected news talks. 5 00:00:13,760 --> 00:00:17,079 Speaker 3: That'd be good afternoon. Can We Bank's got permission to 6 00:00:17,120 --> 00:00:20,080 Speaker 3: partially privatize. It's going to raise half a billion dollars 7 00:00:20,120 --> 00:00:22,520 Speaker 3: from investors to better compete with the big Aussie banks. 8 00:00:22,840 --> 00:00:26,280 Speaker 3: Nicola Willis is the finance minisine with us. Hey Nicola, Hi. Ever, 9 00:00:26,440 --> 00:00:28,520 Speaker 3: so who are you looking at for potential investors? 10 00:00:29,320 --> 00:00:33,199 Speaker 2: Are New Zealand super fund funds in the form of 11 00:00:33,280 --> 00:00:40,720 Speaker 2: ken We Saver funds, potentially MARI investment entities and other 12 00:00:41,040 --> 00:00:44,800 Speaker 2: funds that exist in the professional investment community in New Zealand. 13 00:00:44,520 --> 00:00:45,879 Speaker 3: And they've already said they're interested. 14 00:00:46,720 --> 00:00:50,640 Speaker 2: Yeah. So we've gone through a very comprehensive market sounding 15 00:00:50,720 --> 00:00:54,040 Speaker 2: process over the past few months to see is are 16 00:00:54,040 --> 00:00:56,800 Speaker 2: there people who've got the capital and would want to invest. 17 00:00:56,920 --> 00:00:59,800 Speaker 2: And we've engaged with key we save funds, investment institutions, 18 00:01:00,000 --> 00:01:02,800 Speaker 2: fessional investor groups and the like and that has given 19 00:01:03,880 --> 00:01:07,680 Speaker 2: the Kiwi Bank and the government confidence that yes, this 20 00:01:07,840 --> 00:01:11,200 Speaker 2: is a capital raise that can succeed. And so we're 21 00:01:11,200 --> 00:01:13,160 Speaker 2: now moving to the formal process. 22 00:01:13,240 --> 00:01:15,520 Speaker 3: Why not go bigger than five hundred million. You can 23 00:01:15,560 --> 00:01:16,440 Speaker 3: go a lot bigger than this. 24 00:01:17,240 --> 00:01:20,399 Speaker 2: Yeah, look, it's a really good question. Actually, Kiwi Bank 25 00:01:20,480 --> 00:01:24,920 Speaker 2: is in the midst of a digital transformation and their 26 00:01:25,040 --> 00:01:31,040 Speaker 2: view is that completing that is actually necessary before they 27 00:01:31,080 --> 00:01:34,200 Speaker 2: go bigger. And in terms of the Crown getting the 28 00:01:34,240 --> 00:01:37,160 Speaker 2: most value for its stake, that we will get more 29 00:01:37,240 --> 00:01:40,520 Speaker 2: value in the future once that transformation has occurred. So 30 00:01:40,880 --> 00:01:44,040 Speaker 2: at this point their ability to deploy more than half 31 00:01:44,040 --> 00:01:47,120 Speaker 2: a billion dollars efficiently would be at risk. So we 32 00:01:47,160 --> 00:01:48,680 Speaker 2: think this is the right bit for where they are 33 00:01:48,680 --> 00:01:49,440 Speaker 2: in their growth chang. 34 00:01:49,360 --> 00:01:51,440 Speaker 3: Okay, And so the half a billion dollars means your 35 00:01:51,480 --> 00:01:56,440 Speaker 3: ownership steak as the government is what eighty percent still Yeah. 36 00:01:56,600 --> 00:01:58,800 Speaker 2: Look, it will depend on the final issue size. We've 37 00:01:58,840 --> 00:02:01,160 Speaker 2: said up to half a billion. It may not be 38 00:02:01,880 --> 00:02:04,600 Speaker 2: that amount in the end, and of course what share 39 00:02:04,640 --> 00:02:08,200 Speaker 2: of the business that represents will depend on the final 40 00:02:08,240 --> 00:02:10,440 Speaker 2: issue price in the final structure of the deal. But 41 00:02:10,440 --> 00:02:13,200 Speaker 2: we've set up to five hundred million. Is what we 42 00:02:13,280 --> 00:02:14,080 Speaker 2: are up for. 43 00:02:14,280 --> 00:02:16,519 Speaker 3: And what's it going to take to get you to 44 00:02:16,560 --> 00:02:18,120 Speaker 3: list it on the share market? 45 00:02:19,120 --> 00:02:22,720 Speaker 2: Well, again back to this point one, we've said, look, 46 00:02:22,800 --> 00:02:25,840 Speaker 2: let's get an electoral mandate before we do that, and 47 00:02:25,880 --> 00:02:28,200 Speaker 2: so that will be for individual parties to take a 48 00:02:28,200 --> 00:02:31,200 Speaker 2: position at the election. But I've been advised that any 49 00:02:31,240 --> 00:02:35,160 Speaker 2: potential public offering couldn't take place before around twenty twenty 50 00:02:35,240 --> 00:02:38,359 Speaker 2: eight because Kiwibank will have needed to have successfully completed 51 00:02:38,360 --> 00:02:42,919 Speaker 2: that transformation program to be appropriately positioned for that kind 52 00:02:42,919 --> 00:02:46,360 Speaker 2: of listing on the stock exchange. So that will be 53 00:02:47,040 --> 00:02:50,240 Speaker 2: something that I'm no doubt National Caucus will consider and 54 00:02:50,440 --> 00:02:52,320 Speaker 2: take a position on prior to the election. But the 55 00:02:52,360 --> 00:02:55,960 Speaker 2: advice I've received is pretty clear that the public markets 56 00:02:56,000 --> 00:02:58,200 Speaker 2: are going to be the most accessible source of additional 57 00:02:58,200 --> 00:03:02,919 Speaker 2: capital for Kwibank the future. And I'm ambitious for Kiwibank's growth. 58 00:03:03,000 --> 00:03:06,000 Speaker 2: So yeah, the idea of extra capital meaning that we 59 00:03:06,120 --> 00:03:09,919 Speaker 2: get more lending, a more competitive banking market, and textpays 60 00:03:09,919 --> 00:03:11,359 Speaker 2: out on the hook that appeals to me. 61 00:03:11,480 --> 00:03:14,239 Speaker 3: Yeah, absolutely, Hey do you know what Cash Betel's doing here? 62 00:03:16,120 --> 00:03:16,160 Speaker 1: No? 63 00:03:16,280 --> 00:03:19,240 Speaker 2: I don't, but I am aware of Cash Betel's presence. 64 00:03:19,320 --> 00:03:21,200 Speaker 3: How are you aware of Cash Betel's presence? 65 00:03:21,960 --> 00:03:24,600 Speaker 2: Ah? Because there were a bunch of handsome men and 66 00:03:24,639 --> 00:03:27,360 Speaker 2: suits on the seventh floor, and I said, who's in 67 00:03:27,360 --> 00:03:29,680 Speaker 2: the building? Because these look like very serious people. 68 00:03:29,919 --> 00:03:31,959 Speaker 3: Who's on the seventh floor? Are you on the seventh floor? 69 00:03:32,600 --> 00:03:32,960 Speaker 2: Mm hmm. 70 00:03:33,040 --> 00:03:34,840 Speaker 3: That means when he PE's on the seventh floor as well, 71 00:03:34,880 --> 00:03:36,360 Speaker 3: doesn't it, So are they here to see Winston? 72 00:03:37,800 --> 00:03:41,320 Speaker 2: Well? The only reason I had anything to say and 73 00:03:41,400 --> 00:03:43,160 Speaker 2: answer to your question is because of that. So I'm 74 00:03:43,200 --> 00:03:45,120 Speaker 2: probably being overly open. 75 00:03:45,640 --> 00:03:48,680 Speaker 3: Haven't you. You've said too probably. Thank you, Nicola, I 76 00:03:48,680 --> 00:03:50,640 Speaker 3: appreciate it. Nichola Willis, Finance Minister. 77 00:03:51,480 --> 00:03:54,640 Speaker 1: For more from Heather Duplessy Allen Drive, listen live to 78 00:03:54,720 --> 00:03:57,760 Speaker 1: news talks. It'd be from four pm weekdays, or follow 79 00:03:57,800 --> 00:03:59,520 Speaker 1: the podcast on iHeartRadio.