UDC Finance sold to Shinsei Bank

3 MinutesBy NZ Trucking magazineSeptember 3, 2020

ANZ Bank New Zealand Limited has completed the sale of vehicle and asset finance business UDC Finance to Shinsei Bank following Overseas Investment Office approval for the sale.

UDC Finance chief executive Wayne Percival said the sale to Shinsei Bank 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.” 

The sale was made at NZ$794 million. UDC Finance has approximately 82,000 active borrowers with loans totalling more than NZ$3.3 billion and employs 225 staff throughout New Zealand.

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. 

“We believe UDC is a standout 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,” said Shinsei Bank CEO Hideyuki Kudo.

Kudo says Shinsei Bank intends to retain all UDC staff, all operations in New Zealand, and provide the capital needed to grow funding to customers.

ANZ and UDC have also entered into a partnership agreement, with UDC continuing to be ANZ‘s asset finance partner and the companies say they 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 chairman. 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,” said Percival.

Percival said Shinsei Bank‘s investment in UDC is an important vote of confidence in the New Zealand economy.

“UDC will continue to operate as a strong, independent finance option in New Zealand, supported by the global expertise and strength of Shinsei Bank, to deliver critical asset funding that will help to fuel our economic recovery.

“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. Most importantly they understand the importance of customer relationships, which has been the key to the success of UDC Finance.”