UDC Finance eyes growth after sale

UDC Finance hopes to accelerate growth of the business now its $794 million sale to a Japanese company has been completed.

Shinsei Bank’s purchase of the vehicle and asset finance business from ANZ was sealed after the deal, which was first announced in June 2020, was given approval by the Overseas Investment Office.

Wayne Percival, pictured, chief executive at UDC Finance, says the move will allow his company 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,” he adds.

“UDC will continue to operate as a strong, independent finance option in New Zealand, supported by the global expertise and strength of Shinsei Bank.

“Shinsei Bank will be growing the company in New Zealand, which is great. They like and understand the industries UDC operate in – construction, aviation, road freight, forestry and the automotive industry.”

UDC Finance has about 82,000 active borrowers with loans totalling more than $3.3 billion and employs 225 staff nationwide.

Shinsei Bank Group is a diversified financial group that operates asset financing, and vehicle lending businesses similar to those of UDC within Japan and offshore. Hideyuki Kudo, chief executive, says he is delighted to complete the purchase.

“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 explains.

“Shinsei Bank's intention is to retain all UDC staff, retain all operations in New Zealand and provide the capital needed to grow our funding to our customers.”

ANZ and UDC have entered into a partnership agreement, with UDC continuing to be ANZ’s asset finance partner.