Looking beyond the immediate need
Bold new thinking.
On a blistering hot day in early February, Wairarapa dairy farmers the Shaws (not their real names) called their Agribusiness Manager. ‘We need more water’, they said, ‘so we want to purchase a new centre pivot irrigation system to cover 140 hectares’.
Realising the opportunity to create a very specialised loan, he in turn called on the services of a Bank of New Zealand Treasury Specialist, and together they paid the Shaws a visit.
Now, what sets us apart is our bold new thinking. So having listened carefully to the Shaws, our specialist designed a loan that looked way ahead. It was totally unique for them; and one that no other bank provided.
Firstly, it financed the centre pivot on a fixed rate – protecting them from rising interest rates. As increased production would mean they’d need more Fonterra shares, the loan allowed for their later purchase on the same fixed rate. Best of all, we reasoned that by 2008 the Shaw’s revenue would increase. So at that point their loan can switch to a floating rate to enable greater repayments, while still being capped for safety.
All up, the couple will save thousands. And managing just one loan will save them time too.
So if you’d like to be better off with some bold new thinking from one of our Treasury Specialists, just call your local Agribusiness Manager now.
