The sale of Suncorp Group Ltd (ASX: SUN)'s banking division to 'big four' bank Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the talk of the town on Monday.
But the deal is set to bring some notable and perhaps unexpected benefits for the state of Queensland.
So, why has Queensland found itself in the winner's circle for the $4.9 billion transaction? Keep reading to find out.
Queensland promised a boost from Suncorp sale
The Suncorp share price has lifted 5% on the ASX today while that of ANZ remains frozen amid a capital raise. And there's more on the table than some market watchers might realise.
The sale of Queenland's Suncorp Bank to ANZ could bring some unexpected benefits for the state. ANZ CEO Shayne Elliot outlined some of the bank's promises today, telling today's Suncorp and ANZ Media Conference:
In addition to this transaction, we will also allocate additional lending to support Queensland's renewable projects, and the green Olympic Games infrastructure, as well billions of dollars of new lending for energy transition projects over the coming decade.
The newly promised lending will total $25 billion over the next 10 years.
Of that, $15 billion will support Queensland renewable projects and green Olympic Games infrastructure. Another $10 billion will be on offer for energy projects in the state, particularly those targeting bioenergy and hydrogen.
It's likely exciting news for Queensland, which is already home to many notable renewable energy projects. For instance, Gladstone is the future home to Fortescue Metals Group Ltd (ASX: FMG)'s Fortescue Future Industries' Global Green Energy Manufacturing Facility.
However, there's a significant obstacle to overcome before the state can receive the new green lending.
The agreement between Suncorp and ANZ is conditional on certain amendments to Queensland's State Financial Institutions and Metway Merger Act 1996, among other regulatory approvals.
The sale of Suncorp Bank is also subject to a minimum completion period of 12 months. Meaning, the market might be waiting on the outcome of the proposed amendments for a while.
