A multi-billion dollar finance programme for major vehicle lender UDC will be put in place once ownership transfers from ANZ Bank to HNA Group.
TIP Trailer Services, a European subsidiary of HNA, secured the $2.7 billion arrangement.
The lenders include UDC’s current owner, ANZ Bank New Zealand Ltd, as well as Commonwealth Bank of Australia, Westpac, Deutsche Bank AG, a fund managed by Credit Suisse Asset Management, and the NZ Superannuation Fund.
“We are pleased to have the commitment from these lenders for the secured funding facilities that back our lending programme,” Bob Fast, president and chief executive of TIP, says.
“This funding will underpin UDC’s competitive position under our new ownership. It’s good to be able to provide this assurance to customers well in advance of the planned separation and transfer of UDC to new ownership.”
Fast says securing this funding marks an important milestone in the separation process from ANZ.
Together with UDC being able to offer competitive lending rates for customers, the $2.7 billion finance facilities leaves significant room for UDC to grow, he says.
UDC will report into TIP Trailer Services.
It has also been revealed UDC will continue to be led by its current chief executive Wayne Percival after the transfer of ownership.
Percival, who worked for UDC from 1993 to 2004 and has been at the helm of the company since 2015.
Subject to regulatory approvals, the sale is expected to be completed in late 2017.
