The Government has agreed to measures that support New Zealand Post's credit rating and assist Kiwibank's continued growth, Finance Minister Bill English and SOEs Minister Simon Power announced today.

"The Government has agreed to provide an uncalled capital facility to NZ Post to enable Kiwibank's continued growth. This demonstrates the National-led Government's commitment to both NZ Post and Kiwibank," Mr English says.

"The agreement follows the NZ Post board requesting support from shareholding Ministers to enable the company to preserve its credit rating while Kiwibank continues with its current growth-focused business plan.

"We're confident this provision of uncalled capital, on commercial terms, will give NZ Post and Kiwibank the financial certainty they need to pursue their plans," Mr English says.

Mr Power says NZ Post will be able to call on the capital only in certain defined circumstances, such as Kiwibank experiencing a substantial shock event beyond its own resources and beyond the resources of its parent

"Subscribing for uncalled capital in NZ Post is a proactive measure to support both NZ Post and Kiwibank.

"The uncalled capital provides stakeholders with the assurance that the Government is providing the financial support the NZ Post Group requires, while maintaining a prudent approach to injecting new equity into Crown companies.

"It sits alongside other Government measures such as allowing Kiwibank to retain profits and requiring a lower dividend from NZ Post," Mr Power says.

The exact size of the facility will be reviewed over time in line with the needs of NZ Post.