Five years of success rooted in TriCore — strategy, service, standard: UCB Investment’s CEO

The past five years have been a remarkable journey. From the outset, the vision was to build a trusted investment bank contributing meaningfully to Bangladesh's capital market through 360-degree solutions. Guided by 'TriCore' philosophy—Strategy, Service, and Standard—UCB Investment Ltd (UCBIL) remains committed to consistency, transparency, and excellence.

Speaking to The Business Standard on UCBIL's fifth anniversary, CEO Tanzim Alamgir affirmed its rise as one of Bangladesh's leading merchant banks.

Congratulations on UCB Investment's 5th anniversary. How do you reflect on the journey?

Thank you. Beginning modestly, we now stand among the country's leading merchant banks.

The unwavering support of our parent company, United Commercial Bank PLC (UCB), and our sister concerns, UCB Stock Brokerage Limited and UCB Asset Management Limited, has been central to this journey.

UCB's strong foundation, reputation, and financial strength have provided us with the platform to dream big. Equally important has been the dedication of our team, the trust of our clients, and the guidance of our regulators.

Recognition through national and international awards has validated our efforts and established UCB Investment as a reputable name both domestically and internationally.

What has driven UCBIL's rapid growth in just five years?

At the heart of our success is the ability to provide 360-degree investment banking solutions. We begin by analysing clients' financials, identifying the most suitable instruments, and delivering tailor-made solutions.

Two key factors drive this success — our people and our clients' trust. In less than five years, we have executed 63 transactions, raising nearly Tk170 billion. Managing 50% of bonds listed on the Dhaka Stock Exchange reflects client confidence and market leadership.

Guided by our "three zeros" and 3S Philosophy, we ensure every deal is client-centric, research-driven, and executed with consistency.

What key challenges did UCB Investment face early on, and how were they overcome?

Entering a competitive market with well-established players was a challenge in itself. We needed to differentiate ourselves swiftly, and we did so by focusing on innovation, transparency, and bespoke structuring.

Moreover, we began our journey amid the volatility of COVID-19. Many institutions faced financial strain, yet we supported our clients with sustainable, risk-balanced solutions. Another challenge was balancing business expansion with team development.

While establishing our position in the market, we invested heavily in creating a resilient, collaborative team. This balance between ambition and organisational strength has provided us with long-term stability.

Could you share some performance highlights over these five years?

With a paid-up capital of Tk1,000 million, we have consistently delivered strong results, maintaining a 15% return on equity (ROE), with a target of reaching 20% in the future.

We have successfully managed IPOs, including one for a bank that was oversubscribed by 3.61 times at a time when bank IPOs were underperforming and undersubscribed, as well as for an insurance company. Over the past five years, we have executed three out of four Rights Issues approved by BSEC.

By the end of 2025, we aim to file IPO applications for two Confidence Group companies, with several fundamentally strong IPOs in the pipeline to strengthen the equity capital market's supply side.

Our advisory services now cover IPOs, Rights Issues, bond issuances, mergers and acquisitions, strategic and financial equity investments, and structured finance, positioning us as a true one-stop investment banking platform. Repeat mandates from clients testify to the trust we have earned.

We also take pride in our portfolio management, strategically allocating across diverse asset classes to balance fixed income and equities for sustainable returns. By maintaining over 100% provisions against volatile assets, we have ensured resilience and strong risk management, delivering consistent performance even in volatile market conditions.

How does UCB Investment balance the needs of institutional and retail clients?

For institutional clients, we offer comprehensive solutions, ranging from IPOs and bonds to mergers and acquisitions, alongside structured finance solutions and loan syndication. For retail investors, we provide Discretionary and Non-Discretionary Portfolio Management services, underpinned by robust research and prudent fund management.

We also offer margin loan facilities tailored to individual investor profiles. The principle is simple: whether institutional or retail, clients should regard us as a partner in their long-term, sustainable growth.

Could you elaborate on initiatives like Decode Investment Banking (DIB)?

Decode Investment Banking (DIB) was founded on the belief that capital market concepts are often too complex or inaccessible. Through digital content and interactive events at universities, we simplify these concepts.

Success for us is measured not only by engagement but by the knowledge and confidence gained by young professionals, entrepreneurs, investment bankers, and investors. We view financial literacy as a responsibility.

DIB is our contribution to fostering a stronger investment culture and a knowledge-driven investment banking sector to support Bangladesh's future growth.

How is UCBIL supporting Bangladesh's startup ecosystem?

Startups bring innovation, scalability, and leadership, and Bangladesh has great potential to build a sustainable ecosystem. To support this, UCB Group has established Venture Capital and Private Equity funds worth Tk3 billion, with UCB Asset Management Limited as Fund Manager.

UCB Investment Limited actively channels funds into high-growth startups hindered by limited financing. Collaborating with partners such as Bangladesh Angels Network (BAN), we identify and nurture promising ventures.

Beyond financing, we offer advisory, governance, and investor connections, helping shape startups that could grow into major corporations contributing significantly to Bangladesh's GDP.

How does research drive your strategy?

Research lies at the heart of UCBIL. Our sectoral studies enable us to anticipate market trends, identify opportunities early, and deliver consistent portfolio returns. This strengthens our capital-raising solutions and equips our advisory team with deep industry insights to pinpoint the right deals and offer tailored guidance. By benchmarking globally and collaborating with institutions abroad, we ensure a research-driven approach that keeps clients returning for our insight and expertise.

Can you share more about UCB Investment's social responsibility initiatives?

At UCB Investment, we believe sustainable business growth must go hand in hand with social responsibility. Our CSR initiatives align with SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), and SDG 5 (Gender Equality), focusing on children's health and education, support for underprivileged senior citizens, and women's empowerment.

Through our Investment in Society (IIS) initiative, we contribute a portion of our fee income to these causes. Though modest, these efforts give us great satisfaction, reminding us that our work carries a broader responsibility to society.

What do accolades from Euromoney, FinanceAsia, and The Asset Triple A mean for UCB Investment?

These awards are more than trophies—they affirm our credibility and consistency. Being named Best Investment Bank in Bangladesh for three consecutive years by Euromoney and FinanceAsia, along with multiple accolades as Best DCM House and Best ECM House, validates our efforts.

In 2024, Euromoney named us Best Securities House among 500+ intermediaries, while FinanceAsia honoured us with five Best Deals Awards and two Best House Awards in Asia Pacific. Additional recognition from Asset Triple A and BSEC further underscores our commitment to excellence and sustainable finance.

What message would you share with stakeholders on UCBIL's five-year milestone?

This milestone is both a celebration and a renewed commitment to the future. None of this would have been possible without our clients' trust, our team's dedication, the support of regulators, and the strong foundation and encouragement of the UCB Group.

Looking ahead, we will focus on sustainable finance, regional expansion, and investor education to ensure continued growth and lasting value for all our stakeholders.