SCREENGRAB from www.bpiexpressonline.com
MANILA, Philippines—The Ayala-led Bank of the Philippine Islands has entered into a joint venture deal with leading Japanese financing company Century Tokyo Leasing Corp. (CTL) on the leasing and financing business, consolidating their financial muscle in an “increasingly competitive and dynamic” market environment.
In a disclosure to the Philippine Stock Exchange on Thursday, BPI announced CTL’s purchase of 49 percent of the BPI Leasing Corp., one of the leading leasing companies in the country. The company will be named BPI Century Tokyo Lease & Finance Corp. to reflect the newly forged partnership.
The joint venture is seen to combine CTL’s resources and expertise with BPI’s track record of growth at a time of consumer-led growth in the Philippine market. BPI Leasing’s and CTL’s client portfolios are seen complementary from both geographical and sectoral points of view.
“The creation of this joint venture recognizes our success in the Philippine market and its potential for further growth. BPI has a strong track record of partnerships with international financial institutions, like our BPI-Mitsui Sumitomo Insurance partnership for non-life insurance and BPI-Philam for life insurance,” BPI president Cezar Consing said.
“We are taking a strong business and making it stronger.” “We are very pleased to partner with such a well-established and proven company such as BPI on this investment in the Philippines,” said Shunichi Asada, CTL president and chief executive officer.
“This transaction underscores CTL’s strategy, particularly in Asia, of partnering with local entrepreneurs and industry leaders as part of our strategic investments. Finding a reliable and recognized Philippine partner will help us serve the Filipino consumers and help realize the potential of the market. I am especially optimistic about the relationship this joint venture enables within CTL’s international business,” Asada said.
In leasing, the property of the leased asset like a vehicle or a heavy equipment remains with the leasing company while the lessee obtains the right to use the asset by paying lease rentals for the life time of the leasing contract.
BPI Leasing has been in the business for the last 44 years, offering a variety of products such as financial leases, operating leases, loans, and receivables discounting facilities to corporations belonging to various industries. The company also owns 100 percent of BPI Rental Corp., which handles and manages its rental business for vehicles, machineries and equipment.
CTL is one of the largest leasing companies in Japan. It offers an extensive range of products that includes leasing and installment sale of information and communications equipment, automobile and car rental services, and highly specialized financing in the fields of real estate, vessels, aircraft, healthcare, and energy. It also has an extensive distribution network operating in over 10 countries worldwide.
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