ICRA reaffirms UB Finance’s [SL]BB rating; revises outlook to ‘Positive’

UB Finance Co. Ltd. has announced that ICRA Lanka has reaffirmed its Issuer Rating of [SL]BB, while revising its outlook upwards from ‘Stable’ to ‘Positive’.

This gives UB Finance Co. Ltd. an Issuer Rating of [SL]BB (Positive), a development that comes as the company prepares to embark on an aggressive plan for future growth and expansion, having recently received a capital infusion of Rs. 1.98 billion from its parent company, Union Bank PLC, making it one of the highest capitalised LFCs in Sri Lanka.

UB Finance is one of Sri Lanka’s premier licensed finance companies (LFCs) and a subsidiary of Union Bank PLC. ICRA Lanka is a premier credit rating agency in Sri Lanka and a subsidiary of global credit rating giant, Moody’s Investors Service.

UB Finance DGM Finance Asanka Udugama said: “The upward revision of our Issuer Rating from [SL]BB (Stable) to [SL]BB (Positive) is very welcome as we stand at the threshold of an ambitious journey to expand our operations.”

“Through our expansion strategy, we intend to drive new customer acquisition and invite increased public participation, which will help us to serve our customers better and continue to help Sri Lankans achieve their goals and objectives.

“Backed by a well-designed marketing strategy, next-level customer service and various other public engagement initiatives, UB Finance is set to emerge as a force to be reckoned with in the near to medium term in Sri Lanka’s financial services sector, steadfastly delivering on our commitment to providing a unique economic and social value proposition to all Sri Lankans,” he added.

UB Finance Co. Ltd. is a finance company licensed by the Central Bank of Sri Lanka providing a range of financial products and services to customers, including fixed deposits, savings, leasing, loans, mortgages and gold loans solutions. UB Finance is rated [SL]BB with a Stable Outlook by ICRA, and operates on the basis of integrity and customer empowerment, creating new opportunities for all Sri Lankans.

     
   


 
UB Finance announces appointment of new chairman and board members

UB Finance, a subsidiary of Union Bank of Colombo PLC, has announced the appointment of Mr. Atul Malik as the new Chairman with effect from 03rd June 2021. Mr. Malik succeeds Mr. Alexis Lovell MBE who stepped down from his position as Chairman of UB Finance, having served a term of 9 years. The Company also announced the appointments of Mr. Michael J O'Hanlon and Mr. Moahan Balendra as Non Executive Directors and Mr. Chandrakumar Ramachandra, who has served on the Board for 7 years, as the Senior Director.

The newly appointed Chairman together with the new Members of the Board bring a wealth of experience and background to UB Finance. Their collective expertise will help the Company on its upward trajectory and continue to enhance value for its clients and position the organization for long-term growth and profitability.

Mr. Atul Malik, who currently functions as a Senior Advisor to TPG for their financial services portfolio, is a Senior Financial Services Executive with extensive experience and a successful track record in establishing, expanding and managing scale businesses across Asian developed and emerging markets. Prior to joining TPG in 2017, he served as advisor to General Atlantic, CEO of Maritime Bank Vietnam and a Senior Advisor to Asia Capital & Advisors, a boutique private equity firm. Mr. Malik also serves as the Chairman of Union Bank since October 2017.

Mr. Michael J O'Hanlon is a Senior Advisor to TPG focusing on its financial institution investments. He currently is the Chairman of the Board of Roosevelt Management Company, LLC, an asset manager, and the Chairman of the Board of Rushmore Loan Management Services, LLC, a residential mortgage loan originator and servicer. He has served on the boards of other TPG portfolio companies including Shenzhen Development Bank, Korea First Bank and Bank Thai. Mr. O'Hanlon also serves as a Non Executive Director on the Board of Union Bank.

Mr. Chandrakumar Ramachandra is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka (ICASL). He has served as a Member of the Boards of Sathosa Retail Ltd., Uni Walker Packaging Ltd and several Capital Reach Group Companies. Mr. Ramachandra was previously the Chairman of Asia Asset Finance PLC and the Competent Authority of Hotel Developers PLC, the owning company of the Colombo Hilton. He is presently the Chairman of N. Vaitilingam & Co. (Pvt.) Ltd.

Mr. Moahan Balendra was appointed as an Alternate Director to Lisa Gayle Thomas in 2018 and will now serve on the Board as an Independent Non-Executive Director. He is an Attorney at Law, Fellow of the Association of Chartered Certified Accountants (ACCA) and a Justice of the Peace. He counts extensive work experience in both Sri Lanka and the UK. He currently heads the law firm Sinnadurai Sundaralingam & Balendra, which was established in the early 1960s. He also serves as a consultant to many multinational companies, indigenous companies and individuals. His area of expertise is Constitutional and other landmark litigation, Commercial and Corporate law and inward investment. He also serves on the Boards of a number of other Companies.

The appointment of the new chairman and the new Directors will complement and further boost the power packed Board, which now consists of Mr. Atul Malik (Chairman), Mr. Chandrakumar Ramachandra (Senior Director), Mr. Michael J O'Hanlon, Mr. Indrajit Wickramasinghe, Ms. Lisa Thomas, Mr. Moahan Balendra and Mr. Ransith Karunaratne (Chief Executive Officer).

Over the past eight years UB Finance has acquired a strong lending and deposit client base and has a reputation for strength and stability within the financial services sector. The Company has also built strong connections with local communities and other stakeholders through a well distributed network across the Country.

As a Union Bank Company, UB Finance leverages on the expertise of Group resources for guidance in business operations, treasury management, risk management and good governance and offers its customers the unique business proposition of “the versatility of a finance company backed by the strength of a Bank”.


     
   
 
 
 
UB Finance Co. Ltd. one of the highest capitalized finance companies in Sri Lanka

UB Finance Co. Ltd. a subsidiary of Union Bank of Colombo PLC successfully concluded a Rights Issue to raise approx. LKR 2 Billion to strengthen the Company’s Balance Sheet and meet the revised capital thresholds set out by the Central Bank of Sri Lanka.

The Core Capital of the Company is now LKR 2.67 Billion while the Tier 1 Capital Adequacy Ratio and Total Capital Adequacy Ratio is 30.12% and 30.27% respectively making UB Finance one of the highest capitalized Finance Companies in the industry.

The Company has recorded significant progress since its acquisition by Union Bank of Colombo PLC in 2011 and has established itself as a Premier Financial Services Provider in the Island. The Management is optimistic about the future and will utilize the new capital to propel the Company into its next phase of growth.


     
 
 
 
 
UB Finance Co. Ltd. BB rating reaffirmed by ICRA Lanka

ICRA Lanka Limited a group company of Moody’s Investment Service reaffirmed the UB Finance Co. Ltd. issuer rating of SL (BB) with a negative outlook. The Company is looking at a significant capital infusion by a multinational investor and is confident in further strengthening its position going forward.

Over the past eight years UB Finance has acquired a strong lending and deposit client base and has a reputation for strength and stability within the financial services sector. The Company has also built strong connections with local communities and other stakeholders through a well distributed network across the Country.

As a Union Bank Company, UB Finance leverages on the expertise of Group resources for guidance in business operations, treasury management, risk management and good governance and offers its customers the unique business proposition of “the versatility of a finance company backed by the strength of a Bank”.

     
 
 
 
THE WHEELS OF FORTUNE

Ransith Karunaratne weighs the pros and cons of the financial services industry Having enjoyed consistent year on year growth for almost a decade, the financial services industry slowed down considerably in 2018 and 2019. And as Ransith Karunaratne states, “there is a direct correlation between the macroeconomy and financial services, and the slowdown in economic activity has adversely impacted the industry.” MORE >>

 
UB FINANCE LAUNCHES FACTORING & WORKING CAPITAL SOLUTIONS.

UB Finance Company limited, a subsidiary of Union Bank of Colombo PLC backed by their US based strategic investment partner ShowCap II, has expanded its trade-related portfolio by offering Factoring and Working Capital Solutions to small and medium enterprises. MORE >>

Latest acquisition of Sri Lanka's premier financial institution, Union Bank of Colombo PLC along with its international strategic investment partner Shore Cap II Ltd (USA) formed UB Finance Company Ltd (UBF) in the end of the year 2011.

At UBF we offer our clients with comprehensive financial solutions such as Leasing, Higher Purchase, Loans, Fixed Deposits, Savings, Real Estate and Factoring.  Being registered under the Monetary Board of the Central Bank of Sri Lanka, UBF is the first finance institute to be backed by a commercial bank in the private sector, thus having the stability of a bank and flexibility of a finance company. MORE >>

 

UB Finance Co, which was formed with the acquisition of The Finance & Guarantee Co Ltd by Sri Lanka’s premier financial institution, Union Bank of Colombo PLC and its international strategic investment partner, ShoreCap II Ltd. has become the latest entrant to the world of finance in Sri Lanka.

This significant move with a capital infusion of Rs 1.1 billion has established UB Finance as the only finance company to be backed by a commercial bank in the private sector in Sri Lanka highlighting a positive outlook for all stakeholders of the company in delivering a sustainable and mutually benefitting partnership. MORE >>