CSE Listing Shortly: UB Finance Raises Rs 2 Bn Via Rights Issue

By Ishara Gamage | Published: 2:00 AM Oct 19 2021
FT CSE Listing Shortly: UB Finance Raises Rs 2 Bn Via Rights Issue

By Ishara Gamage 

UB Finance Co. Ltd. a subsidiary of Union Bank of Colombo PLC successfully concluded a rights issue to raise approximately Rs 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 Company said yesterday. Union Bank now owns 94 per cent of UB Finance. “In the future, we will list UB Finance on the Colombo Stock Exchange. 

We are also in talks with a Japanese investor,” a Company spokesman told Ceylon FT. The core capital of the Company is now Rs 2.67 billion, while the Tier 1 Capital Adequacy Ratio and Total Capital Adequacy Ratio is 30.12 per cent and 30.27 per cent respectively, making UB Finance one of the highest capitalised 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 utilise the new capital to propel the Company into its next phase of growth.

By Ishara Gamage | Published: 2:00 AM Oct 19 2021

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