UB Finance to list on the CSE


UB Finance Company Limited (UBF or Company), a subsidiary of Union Bank of Colombo PLC would be the latest addition to the Colombo Stock Exchange (CSE) as it plans to carry out an Initial Public Offering (IPO) of 55Mn ordinary voting shares at LKR 1/- per share. The IPO is scheduled to open on 20th July 2023 and is a prime opportunity to invest in a Licensed Finance Company (LFC) backed by a Licensed Commercial Bank.

The Company is set to debut on the Diri Savi Board of the CSE subject to compliance with the CSE Listing rules and will be one of the first IPOs post announcing of the local debt restructuring framework. The issue will be managed by NDB Investment Bank Limited (NDBIB). The Company embarked on the listing process in compliance with the Central Bank of Sri Lanka (CBSL) requirement for all LFCs to be listed on the CSE.

In 2021, UBF successfully raised LKR 1.99Bn via a rights issue to strengthen the Company’s Balance Sheet and meet the revised capital thresholds set out by the CBSL.  The Company has a high capitalisation ratio with an unimpaired core capital of LKR 2.54Bn and a Tier 1 Capital Adequacy Ratio and Total Capital Adequacy Ratio of 31.07% and 31.07% respectively as at 31st March 2023 comfortably exceeding CBSL thresholds.

The Company has established itself as a leading LFC in the financial services space since its acquisition in 2011 by Union Bank of Colombo PLC together with its strategic investment partner ShoreCap II Limited (a US-based social impact fund).

UBF specializes in asset-backed financing for SMEs, successfully catering to its customers’ diverse needs with an extensive range of financial products and services, including fixed deposits, savings, leasing, loans, mortgages, easy drafts, real estate, gold loan solutions etc. The Company’s contribution towards serving the non-banked space of the economy is notably influenced by the social impact mindset of UBF’s second largest shareholder, ShoreCap II Limited.

Fitch Ratings recently assigned UBF a first time National Long-Term Rating of ‘BB (lka)’ (RWN).

Drawing from the corporate governance practices and financial strength of its two major shareholders, the Company operates on the basis of integrity and customer empowerment, creating new opportunities and delivering unique customer experiences through its 17 branches and multiple customer - dealer touch points across the island. In line with the financial and economic restructuring of Sri Lanka, UBF remains committed to its vision of being “A Preferred Financial Services Provider” fostering growth for SMEs and contributing to the economic development of the country.

 

 
 
UB ෆිනෑන්ස් අද්වීතීය මූල්‍ය සේවාවක් සමග පෙරට.

ශ්‍රී ලංකාව තුල මූල්‍ය කටයුතු සිදුකරන සමාගම් අතරින් කීර්ති නාමයක් දිනා ඇති Union Bank ආයතනට අයත් සමාගමක් වන UB Finance   ආයතනය රුපියල් බිලියන 11 ට ආසන්න වත්කම් හිමි මූල්‍ය සමාගමකි. දිවයින පුරා ශාඛා 17 ක සේවයේ නියතු 260 ක් වන තෘප්තිමත් සේවක මණ්ඩලය සමග ගනුදෙනු කරුවන්ගේ අවශ්‍යතාවයට මනාසේ ගැලපෙන මූල්‍ය සැලසුම් හදුන්වාදෙමින් මේවන විට දේශීය ව්‍යාපාරික ප්‍රජාවගේ මූල්‍ය සහකරු ලෙස සන්නාමගතවී හමාරය. MORE >>
 
UB Finance in Rs. 300 Mn unlisted debenture issue

Paper articles on above investment were published in followings news papers on 28th of October 2016. You can access the articles though the following links. MORE >>

 

UB Finance Launches “EASY DRAFT”

UB Finance enhanced its product portfolio by introducing another attractive working capital tool “Easy Draft”. This innovative working capital solution has been developed to fulfill the short term financing requirements of small and medium enterprises. MORE >>

“Percy” to Cheer UB Finance

UB Finance recently signed up Mr. Percy Abeysekera fondly known as “Percy” by the cricket loving public the world over as a Brand Ambassador to promote the products and services offered by the Company.

Having placed a strong footing in the cricket arena as Sri Lanka’s most influential and loved one-man cheering squad and mascot this extraordinary gentleman who will turn 78 this year has been a major fan and promoter of the Sri Lanka Cricket Team cheering them along for the past 50 years and has amassed priceless memories and experiences throughout his glorious career. With his charismatic personality and invigorating achievements, he has managed to attract a strong following amongst cricket fans as well as cricket players from around the world. MORE >>

 

Union Bank to sell off its finance arm…

Further to the captioned article published in the Business Times section of the Sunday Times of 22nd December 2013, this serves as a correction to inform and clarify to the public the incorrect statements made in the said article.

The Union Bank of Colombo PLC together with its Strategic Investment Partner ShoreCap II Limited invested LKR 1.15Bn to acquire a controlling interest in UB Finance Company Limited in November 2011, making it the first Finance Company to be owned by a private sector Commercial Bank. Union Bank and ShoreCap II currently collectively hold an 82% stake in the Company. MORE >>