We are delighted to see the first offer of Mutual Capital Instruments in Australia.
Australian Unity has published an offer of $100 million of Mutual Capital Instruments to help fund the growth of its business. It is the first Australian mutual to take advantage of new legislation passed in April 2019 which created this new type of mutual share.
Mutuo was instrumental in the design and implementation of the project which brought about the new share:
- Conceived of the project
- Entered into a partnership with the Business Council of Co-operatives and Mutuals
- Formed a project team of leading Australian co-operative and mutual businesses to drive the initiative forward
- Worked with lawyers and funding experts to design the new mutual capital instrument
- Negotiated with Federal Treasury officials and ministers
- Helped to build bipartisan support for the new legislation
- Assisted Parliamentarians in its passage through the Federal Parliament
Commenting on the news, Peter Hunt, Managing Partner of Mutuo said,
“Today is the culmination of four years’ work and just shows what can be achieved by co-operative and mutual businesses working together with their peak body to deliver a real change in legislation. The new mutual capital instruments draw upon the best experience of co-operative and mutual fundraising from across the world.
The new capital will facilitate growth and innovation in the best Australian co-operatives and mutuals, supporting the continued success of the sector. Mutuo’s mission is to improve the business environment for co-operatives and mutuals and we are delighted at this development. We wish Australian Unity all the best in their pioneering effort.”