UCBL Investment Package (IFC-41805)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 24, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
United Commercial Bank Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 65.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 5, 2019

Disclosed by Bank May 24, 2019


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Project Description

According to the bank website, the proposed project comprises of an investment in United Commercial Bank Limited (‘UCB’, the Bank) which is the 3rd largest (in terms of total assets) private sector ‘conventional’ commercial bank in Bangladesh and an IFC client since 2015. UCB started operations in 1983 as a ‘1st generation’ private commercial bank and gradually shifted to a universal bank, offering a wide range of financial services. The Bank has a network of 187 branches along with off-shore banking units, agent banking, MFS (UCash), DFS (Upay), internet banking and priority banking (UCB Imperial). The proposed project comprises of: a working capital facility and a 5-year green loan amounting to up to US$ 65 million in total.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

According to IFC, UCB was started by a few leading local businessmen spearheaded by late Akhtaruzzaman Chowdhury Babu (deceased in 2012). The shareholder group linked to directors and sponsors directly own approximately 34% of UCB’s shares where late Akhtaruzzaman Chowdhury Babu’s family and associates hold controlling shares of UCB.

Contact Information

United Commercial Bank Limited
Md. Sohrab Mustafa
Deputy Managing Director

sohrab.mustafa@ucb.com.bd
Plot - CWS- (A)-1, Road No - 34, Gulshan Ave, Dhaka 1212, Bangladesh
https://www.ucb.com.bd

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/