CBA pilots low-rate loan to support agribusinesses
Commonwealth Bank is piloting a new low-rate loan to support agribusinesses investing in environmental initiatives on their properties.
In what CBA describes as a first for the Australian agriculture industry, the discounted rates will aid agribusinesses who reduce their net emissions, make their properties more resilient to climate variability and enhance their natural capital.
CBA group executive business banking, Mike Vacy Lyle, says the eligibility criteria for this pilot covers a broad range of sustainability practices, such as projects to reduce emissions, sequester more carbon, improve soil health, promote biodiversity and vegetation cover, and protect waterways.
“From planting shelter belts of trees to water use efficiency projects, we want to support customers who are adapting to the changing climate and protecting the environment in which they operate,” he says.
“An important part of the loan will be verification with the customer that the funds are used for defined, eligible purposes.”
“Our first pilot loan is well on its way to supporting Victorian horticultural producer Katunga Fresh, who is investing in the energy efficiency of their glasshouses, which will reduce their emissions intensity.”
The pilot follows CBA’s launch of an Australian-first sustainability linked loan for agriculture and CBA’s Property Sustainability Upgrade Loan for new and existing business customers with commercial properties.