In order to strengthen the capital structure of UB Finance Co. Ltd., its parent Company Union Bank of Colombo PLC invested in a Subordinated Debenture of Rs.300 million.
Chief Executive Officer of UB Finance, Ransith Karunarathne said that the company would use the money raised through the debenture to strengthen its lending portfolio with product diversification to suite the market demand.
“This offering is a proactive move, made from a position of obvious strength that allows UB Finance to secure capital in anticipation of upcoming plans in the coming years, further strengthening its position as a leading financial services organization,”he said.
This debenture issue will lead to a well balanced growth in the company’s balance sheet and maintain the quality of the asset portfolio.
Furthermore, the funds will also be utilized to support the lending in the small and medium enterprise (SME) sector, a growing business focus of the organization.
Its range of products and services including investment solutions such as fixed deposits and savings, coupled with financial solutions in the form of leasing, vehicle and mortgage loans as well as working capital solutions through factoring, cheque discounting and easy drafts.
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