UDC Finance is New Zealand’s largest nonbank lender and has a proud history of supporting the country’s productive sector for more than 85 years. It is also the dominant finance partner for major brands and franchise dealer groups in the automotive finance industry.

UDC focuses on providing asset-based secured finance for vehicles, equipment, plant and machinery to a wide range of New Zealand businesses – including transport, forestry, agriculture, construction and manufacturing – as well as to consumers.

UDC has a history of profitable growth and leading market share, achieved by helping its customers grow and prosper. A major part of this success is an established network of finance specialists throughout the country, whose industry knowledge has helped build successful relationships over many years.

UDC began life in 1937 as Financial Services Limited and by 1980 was a wholly owned subsidiary of ANZ Bank New Zealand. In September 2020, UDC was sold to Shinsei Bank of Japan, a diversified financial group that provides banking and nonbank services, primarily in Japan.

UDC complements Shinsei’s nonbank business, which is primarily in the areas of consumer finance, asset finance and leasing. UDC has a high degree of autonomy and operates as a strong, independent finance lender in the New Zealand market, backed by the expertise, strength and long-term support of Shinsei Bank.

UDC’s funding is provided by a mix of shareholder equity, parental funding, securitised funding (syndicated warehouses and public term ABS issuance) and a bank facility.

In conjunction with the acquisition by Shinsei Bank, UDC established two warehouse facilities of NZ$2.1 billion in total, both rated triple-A, for the funding of secured auto and equipment loans. This landmark transaction created New Zealand’s largest nonbank syndicated securitisation programme.

UDC expects to be a regular issuer of ABS from its warehouse facilities to complement its existing funding arrangements and diversify its investor base across New Zealand and Australia.

UDC’s loan portfolio is well diversified and highly granular across geographical regions, industry sectors and asset types.

UDC has expanded its lending activities over 2022 despite a volatile and uncertain global economic environment, with a key focus on supporting its customers’ transition to a low-carbon operating environment. Part of this support is laying the foundation for being a provider of mobility finance – as the way people choose to travel is changing – and financing for clean-tech equipment that enables improvements in fuel efficiency beyond just funding the purchase of electric and hybrid vehicles. This move should result in green tranches being available in future public, term ABS transactions.

Mark De Ree
Head of Treasury
+64 9 952 7146
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Shane Noone
Chief Financial Officer
+64 9 952 7233
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www.udc.co.nz