TH Genting Group Malaysia will be investing Rs 2 billion in Union Bank (UB) while Shorecap, an international equity fund, will be investing Rs 500 million with some other foreign investors also putting in Rs 500 million to meet with the Central Bank’s (CB) capital raising exercise, UB officials said on Friday.
“We are planning to go for an Initial Public Offering (IPO) late this year or by early next year in keeping with the CB’s mandatory requirements for the commercial banks to list,” Anil Amarasuriya, Consultant/ Director UB told media. He said the amount to be listed is still being discussed at management level.
Tan Kong Han, President/ COO Genting Berhad said that the company decided to invest 20% in UB as it is a small and nimble bank which is without bad habits unlike the big banks. “Also the banking sector is the first to take off in this new economy, which is why we decided to invest in Sri Lanka,” he added. Shorecap will be investing 13% in UB, Mr. Amarasuriya said, adding that all necessary approvals from the CB’s Monetary Board have been obtained for these investors to invest more than CB’s stipulated 10%.