May 21 - Jun 03, 2001
Union Leasing Limited (ULL) is a public listed
company incorporated, in October 1993, under the laws of Pakistan. The
company commenced commercial operations in May 1994. ULL's public
issue was over subscribed by 50 times and it is presently listed on
all the stock exchanges in Pakistan. ULL was established with the
primary objective of providing full pay out leases to business,
industrial and commercial sectors in Pakistan.
ULL is a subsidiary of Union Bank Limited, which at
present holds over 50% of ULL's equity. This association has enabled
ULL to draw upon the expertise of Union Bank Limited's senior
management. In 1999 majority shareholding of Union Bank Limited was
acquired by a Middle Eastern group. Union Bank Limited subsequently
acquired Bank of America operations in Pakistan and became the 2nd
largest private commercial bank in Pakistan. Union Leasing Limited and
Union Bank Limited are jointly able to provide their customers with a
broader range of financial services and products. The authorized
capital of ULL is Rs. 210 million, whereas the paid up capital is Rs.
207 million. This meets the minimum capital requirement set by the
Securities and Exchange Commission of Pakistan (SECP).
Prior to the takeover by current management, ULL
was operating from its head office in Lahore and had a representative
office in Karachi. The current management has relocated ULL's head
office to Karachi, whereas the Lahore office is now a fully functional
branch. This has been done to effectively capture the market and to
change the company's image from a regional to a national one. Plans
are also at hand to establish a branch in Islamabad. Furthermore, for
true nation wide coverage, branch network of Union Bank Limited may
also be utilised for generating business.
Aggressive marketing coupled with risk minimisation
forms the basis of ULL's business strategy. Leasing is ULL's core
business and the company constantly strives to meet customized needs
of its customers. ULL concentrates on medium term financing and has
provided lease finance facilities to a number of industrial as well as
infrastructure related projects. In pursuance of its policy of sharing
risks and rewards with other leasing companies, ULL actively strives
to participate in quality syndications. Furthermore, in order to
augment the growth of small-scale industry in Pakistan, ULL has been
on the forefront of providing lease facilities to small businesses and
consumers. The company's portfolio of small businesses consist of
garment manufacturers, health care providers and computer software /
hardware vendors etc.
ULL is committed to developing new products that
cater to market needs. Consequent to this, ULL launched its vehicle
leasing scheme - UNICAR. UNICAR offers good value for money by
allowing individuals to purchase automobiles with minimal financial
burden as the package is tailored to fit individual requirements.
ULL attaches paramount importance to post
disbursement monitoring. Rentals for monthly / quarterly leases are
monitored constantly in order to ensure compliance with the repayment
schedule. Furthermore, adequate provisioning for doubtful debts is
made keeping in line with statutory requirements stipulated by the
State Bank of Pakistan's Prudential Regulations. Moreover, an amount
equivalent to 2% of the lease portfolio is also set aside as a special
reserve for future doubtful debts.
Pakistan Credit Rating Agency (PACRA) has recently
upgraded ULL's long term rating thus, improving investors' confidence
in ULL's Certificates of Investment. A point to be noted here is that
ULL is authorized by the Securities and Exchange Commission of
Pakistan to issue Certificates of Investment. With emphasis on
innovation and customer service, ULL is poised to become a major
player in the leasing sector.