Esanda moved into ANZ for safety
(23 March 2009 – Australia) ANZ will move its wholly owned subsidiary, Esanda, into the group, to become a division of the wider ANZ bank.
ANZ announced that Esanda Finance Corporation Limited (Esanda), its specialist asset finance business, will transition from a wholly owned subsidiary to a division of ANZ over the next three months.
While the change to being a division of ANZ is not material to ANZ, ANZ said that it will allow Esanda’s customers to benefit from changes to the market place in recent months.
The big safety net that the change provides is to enable Esanda debenture holders that fund half the business to switch to term deposits at maturity and get the benefit of the federal Government guarantee.
While ANZ will now maintain all existing Esanda Debentures, no new Esanda Debentures will be issued.
The transition will also involve the launch of the Esanda Term Deposit, issued by ANZ and supported by the Federal Government’s guarantee on deposits.
Esanda will also continue in lending to small and medium businesses, auto retailers, as well as car and equipment buyers.
In total, A$13 billion of assets will move from the Esanda entity to the ANZ entity over the next three months.
Esanda, established in 1954, is 100 percent owned by ANZ. Esanda’s earnings and balance sheet are already consolidated with ANZ Group for reporting purposes.
The transition to a division causes no change to management reporting lines or the position of Esanda staff, who were already ANZ Group employees.
While the change to being a division of ANZ is not material to ANZ, ANZ said that it will allow Esanda’s customers to benefit from changes to the market place in recent months.
The big safety net that the change provides is to enable Esanda debenture holders that fund half the business to switch to term deposits at maturity and get the benefit of the federal Government guarantee.
While ANZ will now maintain all existing Esanda Debentures, no new Esanda Debentures will be issued.
The transition will also involve the launch of the Esanda Term Deposit, issued by ANZ and supported by the Federal Government’s guarantee on deposits.
Esanda will also continue in lending to small and medium businesses, auto retailers, as well as car and equipment buyers.
In total, A$13 billion of assets will move from the Esanda entity to the ANZ entity over the next three months.
Esanda, established in 1954, is 100 percent owned by ANZ. Esanda’s earnings and balance sheet are already consolidated with ANZ Group for reporting purposes.
The transition to a division causes no change to management reporting lines or the position of Esanda staff, who were already ANZ Group employees.
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