ASB provides $250 mn investment to kick-start ChCh Rebuild

Saturday, 26 March 2011, 11:21 pm
Press Release: ASB Bank

Media release

ASB provides $250 million investment
to kick-start Christchurch rebuild

In a media conference this morning with the Prime Minister, the Rt. Hon. John Key, ASB’s incoming Chief Executive, Barbara Chapman, announced a $250 million investment programme to support the business and community rebuild in Christchurch.

Focused on stimulating the Christchurch economy, local businesses and community groups, these initiatives form part of the largest disaster recovery and rebuild programme to be supported by ASB in its 164 year history.

Speaking from the ASB Branch at The Hub, Hornby in Christchurch, Ms Chapman said, “Canterbury is an important region for both New Zealand and ASB and we have witnessed first-hand the heart ache of the local people and the severity of the damage that has been caused in both the September 2010 and now the February earthquakes. From day one ASB has been committed to stepping up to help its customers and the community in a meaningful way.”

Businesses and community groups across the earthquake-affected Christchurch region are expected to benefit from this major investment by ASB, which complements the customer relief initiatives put in place by the Bank immediately following the disaster.

New ASB Christchurch Business Funds

ASB has created a new Christchurch Business Rebuild Fund to provide additional cashflow relief of up to $100 million for its existing small to medium business customers significantly impacted by the disaster. This new financial support package will mean local Christchurch businesses will be able to switch existing ASB borrowing to one year interest-free followed by an additional two years at a one percent discount off the then current customer interest rate.

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In addition, ASB has created another $100 million loan support fund to encourage new business in the Christchurch region. This ASB Christchurch New Business Fund, which will be available for both existing customers and new business opportunities, will also provide a one year interest free loan followed by an additional two years at a one percent discount.

Principal payments will not be required for the first 12 months under these two Funds.

Concessions for ASB Home Loan and Personal Lending Customers

To support home loan customers substantially affected as a result of the earthquake, ASB has enhanced its original relief package. Existing ASB, BankDirect and Sovereign home loan customers can access a six month repayment holiday along with a one year interest discount of one percent off the variable rate or 0.5 percent off the fixed rate.

Pricing concessions on personal loans and credit cards are also available.

Ms Chapman says ASB wants to take some of the immediate financial pressure away from its customers so they can focus on their immediate family and property priorities.

Community Groups - $1 million assistance programme

The ASB Christchurch Community Groups Assistance Grants have been established, with $1 million to be distributed among registered not for profit community groups who have suffered damage or loss as a result of the February earthquake.

Ms Chapman said "We appreciate the impact that the disaster has had on hundreds of local community and volunteer groups that support the Christchurch people in so many ways.”

“It is for this reason that ASB has launched this grants programme aimed at directly assisting those groups that the Christchurch community depends on to re-establish itself."

Applications for grants of up to $10,000 can be made to support specific community group re-establishment projects. Details of how community groups can apply will be available on www.asb.co.nz/earthquake or at ASB Christchurch branches.

Extension of ASB Branch Network in Christchurch

ASB is further confirming its commitment to Canterbury with the opening of two new branches to be located in Barrington Mall and Rangiora.

“By moving quickly to re-establish and grow the Bank’s operations in the Canterbury region, ASB is confirming its confidence in the recovery of the city and the local economy,” said Ms Chapman.

“It’s clear that a disaster of the scale of the Christchurch earthquakes requires an unprecedented level of investment. As a business, an employer and a supporter of the communities in which we operate, we hope through the initiatives we have announced today to play a significant role in the rebuilding process that is now required to ensure the long-term prosperity of the region.”

“Our support will help people, businesses and communities to re-establish themselves, while at the same time encourage new businesses and employment opportunities in Canterbury,” she said.

For further information on the ASB Christchurch $250 million investment programme, please visit asb.co.nz, ASB’s branches at Hornby Mall, Riccarton Mall, Northlands Papanui or Lincoln University, or ASB’s temporary Relationship Banking Centre at 112 Riccarton Road, Christchurch.

Background information

ASB in New Zealand

ASB has a history of 164 years of service to New Zealanders.

Established in 1847, ASB is a full service bank with over 140 branches nationwide and ten new branches scheduled to open by 2015. ASB provides seamless banking and financial services, combined with a comprehensive range of products tailored to meet the needs of almost 1.2 million individual, business and rural New Zealand customers.

ASB is a leader in technology and innovation. Not only was ASB the first bank in New Zealand to introduce real-time banking between branches in 1969 and the first in Australasia to introduce internet banking, ASB also leads the pack in terms of new media innovations. ASB introduced a Virtual Branch on Facebook where anyone – whether an ASB customer or not – can engage with customer service specialists and we provide our customers with the choice to communicate with us in social media forums.

ASB in Christchurch

ASB opened in Christchurch in June 1993 with three branches at Hereford Street, Riccarton Mall and Papanui.

With two additional branches to be opened in Barrington Mall and Rangiora this year, ASB will have a total 10 ASB branches in the Canterbury region - Riccarton, Hornby Mall, Northlands Papanui, Lincoln University, The Palms Shirley, Armagh Street, Cashel Mall and Ashburton.

ASB branches at Armagh Street, Cashel Mall and The Palms, Shirley are currently closed following the earthquake.

New ASB Christchurch Investment Programme – effective immediately

In addition to the customer relief package announced immediately following the February earthquake, ASB has announced a further $250 million of investment to help Christchurch people, businesses and communities severely impacted by the earthquake. This investment includes:

ASB Christchurch Business Rebuild $100 million Fund

• For existing lending ASB small to medium business customers substantially impacted by the earthquake
• The Fund will offer a 12 month interest free period, followed by two years at 1.00 percent off customers’ rates at the time
• Principal repayments are not required during the first 12 months
• This Fund is available until 31 August 2011
• Customers who were in financial difficulty prior to the earthquakes should call ASB’s Financial Helpline: 0800 272 007.

ASB Christchurch New Business $100 million Fund

• To assist Christchurch businesses to rebuild and expand and to support new business opportunities in the region
• Available for both existing small to medium business customers and new businesses meeting the Bank’s lending criteria, whose future cash flows are expected to be financially viable within 12-24 months
• Maximum of $1 million new business lending per customer
• The Fund will offer a 12 month interest free period, followed by two years at 1.00 percent off market rates at the time
• Principal repayments are not required during the first 12 months
• This Fund is available until 31 March 2012.

Further Concessions for ASB Personal Customers

• Expansion of the Bank’s current relief packages for ASB customers substantially impacted by the earthquakes comprising:
Six month payment holiday and 12 month concessional interest rates for home loan customers (1.00 percent off the home loan floating rate or 0.50 percent off the customer’s current fixed rate)
Discounted rates for credit card customers for 12 months based on the FBT rate (currently 6.24 percent)
For personal loans, a concessional housing variable rate for 12 months and up to six months payment holiday
During payment holidays, interest will accrue at the concessional rates.

ASB Christchurch Community Groups Assistance Grants

• $1 million to be distributed among registered not-for-profit community groups and charities who have suffered damage or loss as a result of the February earthquake
• Applications can be made for grants of up to $10,000 per organisation to assist with specific re-establishment projects
• Applications will open on 28 March 2011 and close on 30 June 2011
• Application forms will be available on line at www.asb.co.nz or at ASB Christchurch branches.

Customers requiring funding support should contact their local branch or relationship manager for more information. Business customers can also phone 0800 272 222. Enquiries about funding new business opportunities can also be referred to this number. All other customers can contact ASB on 0800 272 007.

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