Union Bank of Colombo PLC (UBC) held its extraordinary general meeting on Wednesday, facilitating shareholder approval for the conclusion of its landmark investment agreement of US$ 117 mn with TPG, a leading global investment firm.

Union Bank Chairman, Alex Lovell said the Bank received an overwhelming endorsement from shareholders for the TPG investment.

As per the circular to shareholders issued by UBC, the resolutions passed in summery included the issue of 742,156,249 ordinary voting shares of the company for Rs 15.30 each to Culture Financial Holdings Ltd (CFHL) by way of a private placement and the issue of 218,281,250 warrants to CFHL for Rs 0.30 per warrant conferring the right to subscribe to one new ordinary voting share per Warrant at any time within a period of six (6) at a consideration of Sri Lankan Rupees sixteen (LKR 16.00) per ordinary voting share.

The investment, one of the largest foreign direct investments to Sri Lanka in the recent years, now places Union Bank amongst the top five private Banks in equity and dominates in the second position in stated capital amongst all Banks in Sri Lanka.

It further aligns UBC to the Central Bank road map on consolidation in the banking and non -bank financial institution sectors. Marking this milestone investment to the financial services industry in Sri Lanka and to Union Bank in particular, David Bonderman, Founding Partner of TPG is currently in Sri Lanka.