UB has attractive corporate banking solutions to cater to the needs of the country's Corporate sector. These facilities are available through our integrated network of branches in Colombo as well as in the provincial cities through a team of experienced and committed relationship managers who are based in the Corporate Banking Division in the Bank's Head Office.

We are mainly providers of working capital and Trade Finance facilities such as Import and Local L/Cs, Import Loans, Import Receipts, Trust Receipts, Pledge Loans, Provisioning Short Term Loans, Medium Term Loans, Guarantees and Forex products, Leasing, etc. through our Domestic Banking Unit and Foreign Currency Banking Units both in Sri Lankan Rupees or designated foreign currencies. The bank is well represented by a network of Correspondent Banks in all major overseas centres.

For any further clarifications you could contact the following who will in turn respond without delay.

Mr T Kuhan - Chief Manager Corporate Banking
Tel:2374100/4525525
Fax:2370691
Email: kuhan@unionb.com

Mr Asoka Pandithasekera - Senior Relationship Manager
Tel:2374100/4525525
Fax:2370691
Email:asokap@unionb.com

You could also correspond with them at the following address:
No:15 A Alfred Place, Colombo 03.

Working Capital Financing

For organizations which require to defray their operating expenses until collection of their sales and other income, working capital advances are ideal. We price these facilities very competetively and on flexible terms to suit your cash flow requirements in the form of overdrafts or loans.

Trade Finance and Short Term Loans:

Our Trade Finance facilities cater to the import, export and local trading and consist of the following products.

Irrevocable L/Cs (both on sight and usance terms) – This is to enable either the import or local purchase of raw materials or finished goods or equipment, etc which is needed for your business operations. Commitments under these L/Cs could be post financed in the following manner :

• Short Term Import/ Local Purchase Loans/ Trust Receipts – These credit facilities would enable you to clear the goods procured under the L/Cs and retain same in your custody until sale or conversion and sale in the case of raw materials. Usual duration of such short term loan facilities range between 30-180 days depending on the nature of the transaction. Settlement of the loan would be from the cash flow of the business generated by the utilization sale of the goods procured.
• Pledge Loans – This is another facility which is particularly useful for industries which require to procure large quantities in order to obtain price advantages, etc and for future raw material requirements. In the case of Pledge Loans, the goods would be stored in the customer's warehouse or in an independent warehouse under the control of the Bank and release of goods would be made by the bank periodically or once and for all, against payments of equivalent value. Pledge Loans are granted for period's up to 180 days depending on individual requirements.
• Acceptances – The bank also extends post import facilities via acceptance of usance drafts in the case of imports effected under Usance L/Cs in instances where Importers enjoy supplier credit periods from their principals subject to however, a L/C guaranteeing payment to the principal at the end of the credit period.

Export Credit facilities

The bank offers a variety of export facilities both by way of pre and post shipment credit:

Preshipment Credit / Packing Credit facilities – With durations extending up to 180 days could be considered for Exporters who have valid and confirmed export orders from reputed buyers or irrevocable documentary credits issued in their favour, by acceptable banks. Our packing credits enable Exporters to effectively finance their export orders including costs required for freight and insurance as well as we usually consider advances up to approx. 75% of the value of the export order. Packing credits are also extended to meet cost of imported raw materials. These packing credits are usually recovered from the proceeds of the relevant export, either from an inward remittance of export proceeds or by negotiation under a documentary letter of credit or under a documentary export bill negotiation facility, which is a facility of post shipment extended by the Bank. Settlement of Packing Credits are either from direct inward remittances from buyers or negotiations of a Documentary Credit or under post shipment credit facilities extended in the form of negotiation of export bills facilities for bills drawn on sight (DP Terms) or bills drawn on DA Terms.

Negotiations of Documentary Bills drawn on D/P or Sight Terms –This facility enables an Exporter to get immediate cash on his exports until payment by the overseas buyer in respect of the documents and it assists exporters to continue operations, without encountering cash flow difficulties, until the buyer effects payment. The facility is self liquidising in the sense that when the exporter makes payment of the bills on presentation of documents such proceeds are remitted to recover the value of the negotiated bill.

Negotiation of Documentary Bills on D/A Terms - It is sometimes necessary for Exporters to provide supplier credit to their buyers. In some cases the credit period may extend up to 180 days and if an Exporter is to remain without receiving payment dues such period difficulties would be encountered UB's negotiation of Documentary Bills facility offers post shipment credit to exporters who ship to buyers on D/A terms by way of purchase of the relevant export bills pending settlement by the Exporter after the supplier credit period.

Bank Guarantee Facilities – The Bank also issues Guarantees on behalf of customers for a variety of purposes.

• Host of transactions including a sector of Constructors – These are issued on behalf of customers favouring many beneficiaries who have extended customer credit in the form of goods, services or funds until the eventual settlement of such credit by the customers on an agreed date. These include Advance Payment Guarantees issued favouring beneficiaries who grant advance payments to Contractors for various construction and infrastructure projects.
• Bid Bonds – These are bonds required by principals from prospective parties interested in a particular project or contract as a commitment of their intention to participate in such contract. These bonds are usually accompanied with tender docs relating to contracts and is a common type of guarantee issued to clients in the construction sector.
• Performance Guarantees – are issued by the bank to those who have been awarded a specific job or contract on behalf of the bank's client. This is also a very popular and common type of guarantee in usage in the construction sector.
• Retention Payment Guarantees – This is a guarantee issued on behalf of a customer who has completed a contract and who requires the retention money retained by the principal for a specified period released in lieu of a guarantee for a like amount. This is also a common type of guarantee used in the construction sector.
• Guarantees favouring Director General of Customs - These are guarantees issued on behalf of constituents who make regular import payments or have manufacturing inbound facilities or duty commitments payable to customers on a specified date.

Leasing – is a popular and flexible product which enables a customer to obtain asset financing without the need to invest capital either wholly or partially. This is a facility tailored to your cash floor and would enable you to settle the commitments in a flexible manner over a period of time ranging from 3 years to 5 years in monthly rentals.