Cleary Gottlieb is representing its longtime client TPG Capital in its investment of approximately $117 million into Union Bank of Colombo, a company which is listed on the Colombo Stock Exchange and is also one of Sri Lanka’s fastest growing commercial banks focusing on Small and Medium Enterprises. The investment will be through a combination of primary and secondary shares, representing up to 70% of the issued share capital, and warrants that, if exercised in full within their six-year term, would increase TPG’s interest in UBC to 75%. The Central Bank of Sri Lanka approved TPG’s investment in UBC on August 6, and the transaction was announced on August 14.
The deal, which is TPG’s first investment in Sri Lanka, is the largest foreign investment ever in the Sri Lankan banking industry.
