MUFG Bank signs BTNZ as first client for green deposits product in New Zealand

The funds are used for green loans in clean transportation and green development.

MUFG Bank has signed BT Funds Management (BTNZ), the funds management arm of Westpac New Zealand, as its first client for MUFG’s green deposits product in the country.

The green deposits product offers tenors that range from 1 to 12 months and is reportedly the first of its kind available in Australian dollar, New Zealand dollar, and US dollar for the New Zealand market, according to MUFG Bank.

ALSO READ: MUFG names Angus St. John as head of financial sponsor coverage in APAC

Customers may place term deposits with MUFG, which are then used to fund qualifying green loans for key projects in clean transportation, green buildings, energy efficiency, and sustainable water or wastewater management products. 

“We are pleased to place our first green deposit with MUFG in New Zealand. MUFG was the first bank to approach us for green deposits, and the bank’s green deposit framework enables BTNZ to add further green investment exposure to KiwiSaver and other investment products that support sustainable investment goals,” said Philip Houghton-Brown, head of investment solutions at BTNZ.