New lending facility for Police & Nurses

Police & Nurses Mutual Banking is negotiating with ANZ to obtain a $500 million secured lending facility.

Final negotiations with ANZ over the facility are expected to be completed within the next few weeks, while first funding is due early next month.

Police & Nurses chief executive Fred Huis said the securitisation facility would complement existing funding sources, and would give the firm a diverse range of funding options to satisfy members' borrowing requirements.

Mr Huis said over the past 12 months Police & Nurses gained over 9,000 new members, advanced more than $700 million in loans and has seen 24 per cent growth in deposits.

Also, over the past two months, Police & Nurses home loan balances grew by an annualised 15 per cent.

Mr Huis said the ANZ facility would allow Police & Nurses to accommodate its members' growing requirements.

"In February and March 2010, the home loan applications we received are the highest we have seen in two years," Mr Huis said

"This is a positive indication for the outlook of the WA economy and by broadening the range of funding options, our growing number of members will benefit from greater access to lending funds.

"This new facility will also generate significant funding benefits for the Society."

At 100,000 members, Police & Nurses is Western Australia's largest locally run financial institution.