State-owned New Zealand Post has injected NZ$90 million of fresh capital into Kiwibank as part of a deal to sell 47 per cent of the bank to the Government's Accident Compensation Corporation and New Zealand Superannuation Fund for NZ$494 million.A preliminary version of the deal was announced in April and was supposed to involve ACC buying 20 per cent of Kiwibank and NZSF buying 25 per cent for NZ$495 million. Instead, ACC said it would now buy 22 per cent to allow it to appoint a director if its stake was diluted in the event it did not take up a future capital raising, given there was a 20 per cent threshold for appointing directors. The deal was also delayed by four months to conduct extensive due diligence, which NZSF said found a weaker second half performance for the bank, which reduced the price slightly. The revised deal also involved New Zealand Post using some of the proceeds to inject NZ$90 million of fresh capital into Kiwibank, which NZ Post CEO Brian Roche said "pre-empted future capital requirements and underpinned its platform for future growth."NZSF said the capital injection would make Kiwibank's capital ratios comparable with the other major banks in New Zealand, "supporting further growth of the business."ACC and NZSF have agreed not to sell their shares in Kiwibank for five years, and then to offer a first right of refusal to the Government. "The deal keeps Kiwibank in public ownership and gives the bank access to additional sources of capital," Finance Minister Bill English said."It also returns a dividend of about NZ$200 million to the Government which can be used for other high priorities," he said.NZ Post would use the remainder of the funds to repay debt. It said it would also withdraw its guarantee for deposits made after February 28 next year, which was indicated in the April announcement. Moody's said it expected to downgrade Kiwibank's credit rating by one notch to A1 upon the removal of the guarantee, but noted that the Government had provided a NZ$300 million uncalled capital facility for Kiwibank to use for up to ten years.