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Sri Lanka’s UB Finance to raise Rs1.6bn equity to boost capital

ECONOMYNEXT – Sri Lanka’s UB Finance Company Ltd, a licensed non-bank lender said a plan to raise 1.6 billion rupees through a rights issue has been approved by the regulator.

The rights issue will meet enhanced capital requirements set by the Central Bank of Sri Lanka for December 31, 2020.

“Despite the challenges faced by the Financial Services Sector due to the Covid-19 pandemic, the Management is optimistic about the future of Sri Lanka as a Commercial, Financial and Transshipment hub and is geared with innovative products and technological platforms to leverage on and support this economic growth,” UB Finance said in a statement.

Colombo-based Union Bank owns 81 percent of UB Finance’s voting stock and Equator Capital Partners, an emerging markets fund manager, 13.2 percent.

The balance is held by minority shareholders. (Colombo/Oct16/2020)