June 7, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

When the National Bank of Australasia merged with the Commercial Banking Company of Sydney in 1981, NAB was born. Today, the bank employs 32,000 and serves more than 8.5 million customers in Australia and overseas. 

In early 2022, the group launched its Indigenous business strategy with aspirations to be the bank that backs Indigenous businesses. This led to the establishment of its Indigenous Banking team of specialists who understand the challenges and needs of the Indigenous business sector. 

Aligned with this goal, NAB announced it has agreed to invest AUD10 million (US$6.66 million) in New Harvest’s Indigenous Impact Investment Fund (NHIIIF) – an investment vehicle launched to invest in assets that are complementary to the assets of First Nations Australians. 

Andrew Irvine, NAB Group executive business and private banking, noted the significant potential existing for NAB to support sustainable Indigenous business growth for Indigenous Australians while generating prosperity.

“We have listened to Indigenous Australians’ concerns regarding the barriers they continue to experience when attempting to establish and grow their businesses,” said Irvine. “This investment opportunity is about finding more innovative ways to unlock the potential of businesses operated by Indigenous Australians, contributing to a stronger Australian economy.”

Led by Simon Gray, former managing director and head of trading at a number of investment banks, and managed by a team including industry experts and indigenous representation, this New Harvest Fund will make land-based investments to assist traditional owners unlock the value of their agricultural land and carbon projects while increasing the agribusiness expertise of these groups. 

“Supporting the New Harvest Fund aligns with our ambition to drive commercial responses to society’s biggest challenges,” said Irvine. “This includes the priorities of Indigenous business, climate action and affordable and specialist housing.”

Once established, NHIIIF will build a portfolio of agricultural assets that will be operated in cooperation with Indigenous operators with the goal being to achieve economic, social, and cultural benefits for Indigenous communities and targeted returns for investors through the production of higher value produce, cost efficiencies, and predictable operating yields. 

“Business has an integral role to play in strengthening Indigenous leadership and creating opportunities for Indigenous communities to succeed,” said Irvine. 

“This investment is an opportunity to support the sustainable commercialisation of Indigenous Australian assets for current and future generations, whilst providing training and employment opportunities. Working together with Indigenous Australia, we want to strengthen financial resilience, increase business and employment opportunities, and develop NAB’s cultural capabilities.”

This capital commitment from NAB is connected to various conditions, including the requirement that NHIIIF raises a minimum of AUD51 million (US$33.94 million) from both the founders of the New Harvest Fund and other outside investors. 

Additionally, further debt funding may be provided by NAB depending on the ultimate size of the fund, and the operational entity meeting NAB’s lending requirements. 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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