(Reuters) – The Australian government will be giving ANZ Group a loan guarantee worth A$2 billion ($1.26 billion) to keep selling its services in the Pacific region, the lender said on Friday.
The government also assesses the probability of the guarantee being called as very low. It includes an annual fee payable by the bank to the government.
Under the agreement, ANZ will invest a further A$50 million in its Pacific banking business to help support ongoing operations and ramp up its digital banking offering, the bank said in a statement.
The banking group is currently expecting the guarantee to begin in the second half of 2025, it added.
($1 = 1.5911 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi Aich)
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