NAB invests in Indigenous prosperity with New Harvest Fund

Zak Kirkup Published June 8, 2023 at 5.00pm (AWST)

business

National Australia Bank Group Executive Business and Private Banking Andrew Irvine says NAB is committed to supporting Indigenous businesses. (Image: National Australia Bank Limited)

National Australia Bank (NAB) this week pledged a proposed $10 million investment in the New Harvest Indigenous Impact Investment Fund, a new initiative aimed at fostering Indigenous business growth and prosperity.

The fund, which will be operated in collaboration with Indigenous corporations and Traditional Owners, aims to enhance the agribusiness expertise of these groups.

Andrew Irvine, NAB Group Executive Business and Private Banking, highlighted the bank's commitment to supporting Indigenous businesses.

"We have listened to Indigenous Australians' concerns regarding the barriers they continue to experience when attempting to establish and grow their businesses," Mr Irvine said.

"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."

The New Harvest Fund will acquire a portfolio of agricultural assets to operate in cooperation with Indigenous operators, with the aim to achieve greater Indigenous economic, social, and cultural benefits, along with the target return for investors.

The fund will seek to deliver higher value produce, cost efficiencies, and more predictable operational yields through the cooperative operation with Indigenous corporations and traditional owners.

However, NAB's investment is contingent on the New Harvest Fund raising a minimum of $51 million from both its founders and other investors.

Additional debt funding from NAB may be provided, dependent on the ultimate size of the fund and the operational entity meeting NAB's lending requirements.

The New Harvest Fund will be led by Simon Gray, who has previously held positions of Managing Director and Head of Trading at several investment banks.

The management team will also include independent industry experts and Indigenous representation.

Mr Irvine said supporting the New Harvest Fund aligns with NAB's ambition to drive commercial responses to society's biggest challenges.

"This includes the priorities of Indigenous business, climate action, and affordable and specialist housing," Mr Irvine said.

In early 2022, NAB launched its Indigenous business strategy and its Indigenous Business Banking team – a specialist team of bankers for the Indigenous business sector in a bid to build a unique Indigenous business service proposition to meet the needs of Indigenous business customers across the country.