Press Release 2015
UOB sharpens focus on supporting the growth of financial institutions in Asia
Kuala Lumpur, 15 October 2015 - United Overseas Bank (UOB) is sharpening its focus on supporting the growth of financial institutions expanding and investing in Asia.
In the first six months of 2015, UOB's Financial Institutions Group's (FIG) revenue rose 41 per cent
year-on-year as the Bank tapped on its Asian expertise and network to help its FIG clients meet their funding, trade financing, cash management, hedging and capital market needs across the region.
These clients comprise banks and non-bank financial institutions (FIs) such as insurance companies, global funds, sovereign wealth funds and pension funds.
Ms Lim Lay Wah, Global Head of Financial Institutions Group, UOB, said that the Bank's partnership with FIG clients meant that they could play a bigger role in Asia's economic development.
"The growth of financial institutions is fuelled by rising intra-regional trade1 increased demand for infrastructure and growing wealth management needs of the region's expanding middle class population. UOB's deep knowledge of Asia and our integrated network have been harnessed to connect our FIG clients to regional opportunities," Ms Lim said.
One example of UOB's collaboration is with a state-run Indonesian bank - Indonesia Eximbank (IEB). UOB was one of the mandated lead arrangers, underwriters and bookrunners (MLABs) on a US$1 billion syndicated loan2. The loan was used by IEB to provide financing to support Indonesia's cross-border trade. Mr Basuki Setyadjid, Managing Director, IEB, said, "UOB played an important role in our recent successful syndicated loan deal as one of the MLABs, helping us to diversify our funding sources. Today, UOB is also providing us with advisory on liquidity management, treasury and alternative fundraising solutions in the capital markets."
Helping non-bank financial institutions tap Asia's investment opportunities
In addition to helping banks, UOB is facilitating the investment needs of non-bank FIs that are looking to grow their assets in Asia to tap the region's growth opportunities. For instance, pension funds are expected to invest US$6.5 trillion in assets across Asia Pacific in 2020, double the amount in 20123.
Ms Lim said, "We are seeing more global institutional investors directing their funds to Asia. As a bank with an extensive network across Asia, UOB is able to connect clients to the opportunities that the region offers and help them source for and finance quality assets".
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1 According to McKinsey, intra-Asia trade flows are expected to surpass intra-Europe trade flows as the largest in the world by 2016.
2 Up to five year tenor.
3 PwC, "Asset Management 2020: A Brave New World".