Heartland Bank is planning a corporate restructure and a listing on the Australian securities exchange which it says will help it grow.
"The restructure will remove constraints on the growth of group's business currently arising from Reserve Bank regulations, and will provide greater flexibility for the group to explore and take advantage of future growth opportunities in New Zealand and Australia outside the banking group regulated by the Reserve Bank," it said in a release to the New Zealand stock exchange.
Under the restructuring, which requires High Court and shareholder approval, Heartland Bank will become a wholly-owned subsidiary of a new listed parent company, called Heartland Group Holdings.
Existing shareholders' shares in Heartland Bank will be exchanged with new shares in the new listed parent on a one-for-one basis and the Australian group companies will be transferred from Heartland Bank to the new listed parent.
The Australian business includes part of its reverse mortgage business, something that has grown steadily since it bought Australian Seniors Finance in 2014. Heartland's reverse mortgage loan book has grown to more than $1 billion, of which more than half is in Australia.