(18 August 2022 – Australia) Commonwealth Bank (CBA) has released its Agri Green Loan nationally at a time when Australian enterprises are sourcing new and replacement equipment and machinery in record volumes.
The product launch follows a successful pilot and enables more farmers to access funding at discounted rates for eligible purposes that reduce their greenhouse gas emissions, build resilience to climate variability, and enhance their natural capital.
In CBA’s financial year results 2022 the group recorded the largest volume of new asset finance lending in the bank’s history, with businesses in agriculture, manufacturing, and production driving demand for equipment and machinery. According to the bank’s latest business data, assets such as forklifts went up by 49 percent, trailers increased by 37 percent, and demand for cranes lifted by 26 percent.
“Agriculture is a core sector for the Australian economy, representing approximately 12 percent of goods and services exported, and it’s crucial it’s supported to deliver a purposeful transition. The drive towards greater sustainability is creating more opportunities for agribusinesses” commented CBA Group Executive of Business Banking, Mike Vacy-Lyle.
“Agribusinesses are continuing to take actionable steps to reduce their environmental impact and often also enhance farm productivity. Many of our customers are transforming their operations by investing in new technology and upgrading infrastructure to reduce emissions or adopt more sustainable farming practices.”
“Australian businesses have proved resilient as we’ve adjusted to living with Covid-19. Many have increased their investment in productive capacity to strengthen their businesses and are taking positive action to overcome issues including supply chain disruptions by refining procurement processes and asset management.”
The next round of East & Partners long running Asset Financing program released next month provides a detailed break down of behavioural customer shifts, relative asset finance provider performance and forecast asset finance demand.