ANZ Bank has completed the sale of its vehicle and asset finance arm UDC Finance to Shinsei Bank following Overseas Investment Office approval.
UDC Finance chief executive Wayne Percival says the sale to Shinsei Bank for NZ$794 million will position UDC to continue as New Zealand’s largest non-bank lending institution.
“Shinsei Bank’s strong funding, international experience and reach, coupled with its deep asset finance experience, will be a real advantage in accelerating the growth of UDC in New Zealand,“ Percival says.
UDC Finance has more than 82,000 active borrowers with loans totalling over NZ$3.3 billion and employs 225 staff throughout New Zealand.
The Shinsei Bank Group operates asset financing, and vehicle lending businesses similar to those of UDC within Japan and offshore.
Shinsei Bank chief executive officer Hideyuki Kudo says he was delighted to complete the purchase and for UDC Finance to become part of the Shinsei Bank Group.
“We believe UDC is a stand-out performer and will be a major asset for the Shinsei Bank Group. UDC Finance will continue to operate as an independent finance company and we are taking a long-term approach to building and growing UDC in New Zealand,” he says.
“Shinsei Bank intends to retain all UDC staff, retain all operations in New Zealand and provide the capital needed to grow our funding to our customers.
“UDC has a significant role to play in supporting the growth of the New Zealand economy and helping businesses and people with their financial needs.
“ANZ and UDC have also entered into a partnership agreement, with UDC continuing to be ANZ’s asset finance partner and we are jointly committed to supporting shared customers.
“We have appointed a new UDC Finance board, and we are thrilled to have former Westpac Banking Corporation CEO Dr David Morgan come on board as chair. David has a long connection with Shinsei Bank. He is currently a partner at JC Flowers.”
“The Board will benefit greatly from David’s leadership and strategic guidance, in particular through this next phase and as we face the ongoing economic impacts of Covid-19,” Kudo says.
Percival says Shinsei Bank’s investment in UDC is a vote of confidence in the New Zealand economy.
“UDC will continue to operate as a independent finance option in New Zealand, supported by the global expertise and strength of Shinsei Bank, to deliver asset funding that will help to fuel our economic recovery,” he said.
“Shinsei Bank will be growing the company in New Zealand. It likes and understands the industries UDC operate in – construction, aviation, road freight, forestry and the automotive industry.
“Most importantly it understands the importance of customer relationships, which has been the key to the success of UDC Finance,” Percival says.
