"2-S" which consists of "strategy" and "services," is the winning mantra for UCB Investment, said its Managing Director Tanzim Alamgir.


He also thanked the professional team that the investment bank built over the last three years, along with its status as a wholly owned subsidiary of a leading corporate lender, United Commercial Bank.


The new generation merchant bank, on 5 October, is celebrating its three years of remarkable growth and achievement in the business of helping companies raise funds, getting corporate advisory alongside supporting clients in their investments.

In three years, UCB Investment processed a staggering total of Tk9,400 crore of debt or equity fund collection for its client companies, far ahead of its competitor investment banks.


Winning Bangladesh's Golden Jubilee Award as the best merchant bank in 2022, UCB Investment, for the first time in Bangladesh, won three of the prestigious international awards – FinanceAsia Awards, Euromoney Awards for Excellence, and the Asia Money Awards in 2023 as the best investment bank in Bangladesh.


The right strategies


"When the equity initial public offerings (IPOs) were apparently slowing down and the market for equity IPO issue management services was already crowded, we focused on the most potential services – corporate bond issuance and their fund arranging," Tanzim Alamgir told TBS in a recent interview to explain his first mantra strategy.


"Commercial banks were in need of capital strengthening, and it was clear that they would be issuing bonds," he said.


UCB Investment, established in 2020, stood apart in 2021 through prudent navigation in the secondary market.


"The stock market, already tired after a sharp rally over fiscal 2020-21, was signalling a potential weakness," he said, adding, "We went conservative in investing in equity securities; we allocated more of our own capital in fixed income instruments."


The decision paid off, as the stock market has been struggling to get rid of the stretched sluggishness for the last two years.


Unlike many merchant banks, UCB Investment did not expose itself too much in the business of disbursing margin loans as market adversity forced the industry into trouble recovering the loans.


Against its own capital of Tk100 crore, only Tk1 crore is in margin loans to clients.


Quality services


"We have not only thrived but have also emerged as a trusted partner for leading banks, financial institutions, and corporate entities in Bangladesh," said Alamgir, adding that from its inception, UCB Investment embarked on its journey with a commitment to providing 360-degree services that encompass all facets of investment banking.


His investment bank served its clients by raising over Tk8,000 crore in 28 issuances of fixed income securities, while equity IPOs, right share issue management, syndication loan arrangements, preference share issuance, mergers and acquisitions, and other investment banking services together made up the rest of the amounts dealt.


"It happened; the mandated arranger failed to help a number of bond issuers raise the target funds, and later UCB Investment made it possible," said Alamgir while discussing his firm's competitive strength in the industry.


Beyond its professional achievements and annual profits, UCB Investment remained dedicated to making a positive impact on society.


With a focus on child health, education, well-being, healthcare, and accommodation for underprivileged senior citizens, as well as women's empowerment, the company annually allocates a percentage of its profits to support these noble causes, demonstrating its commitment to corporate social responsibility. 


Source: The Business Standard

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