UOB inks JV deal with Shenergy to offer consumer financing

UOB is entering a joint venture with Shenergy (Group) Company Ltd to set up a consumer finance limited liability firm in Shanghai.

The company, which will be called Shenergy Consumer Finance (Shenergy CF), will have a registered capital of 500 million yuan (S$98.6 million). UOB will have a 19.9 per cent stake in the firm, and Shenergy (Group) will own 80.1 per cent.

Shenergy CF will offer consumer financing in China, including personal loans for the purchase of energy products and services. It will tap the combined strengths of both shareholders, namely Shenergy's customer base and ecosystem in the country's energy sector and UOB's risk management expertise.

The joint venture would help deepen UOB's presence in China, said the group.