Japanese leasing firm hikes stake in joint venture with PNB

Tycoon Lucio Tan-led Philippine National Bank has strengthened its partnership with Japan’s IBJ Leasing Co. (IBJL) by selling to it an additional 15 percent stake in their leasing and financing venture.

The board of PNB has approved the sale to IBJ Leasing the additional equity ownership in Japan-PNB Leasing and Finance Corp. (JPNB), which the parties will rename as PNB-IBJL Leasing and Finance Corp. next year.

Under the terms of the “new and expanded” partnership, IBJL increased its stake in JPNB from 10 percent percent to 25 percent with the acquisition of additional shares from PNB, which keeps a 75-percent stake in the leasing company.

“As a result of the increase of equity share, JPNB will now become an affiliate company of IBJL, further cementing its strategic role as the local representative of one of the biggest Japanese leasing companies and, consequently, a gateway into a diversified array of new business opportunities,” the disclosure said.

“The move is seen both as a validation of renewed confidence in the Philippines as an investment destination and in PNB’s stature as the country’s leading financial institution,” the disclosure said.

The Japanese partner’s decision to expand its stake in JPNB is seen “part of a larger strategy to effectively respond to the pronounced need of major Japanese retailers and auto makers to seize opportunities in the fast growing Philippine consumer market.”

“The financial muscle of IBJL and its extensive network of Japanese businesses is expected to complement PNB’s strong brand heritage as the country’s preeminent financial institution as evidenced by its almost 100 years of leadership in the industry as the country’s national bank with the largest global footprint,” the disclosure said.

The change in the commercial name of JPNB to PNB-IBJL, which is still subject to regulatory approvals, is seen as the “opening salvo of the company’s drive to increase its market share, which has grown considerably in the last four years.”

JPNB was established in January 1998 to meet the financial requirements of advancing Japanese firms and local businesses including PNB’s clients. In the last 16 years, the company has consistently maintained its upward trajectory drawing strength from its variety of products and services that range from financial leases, operating leases, loans, and receivables discounting facilities.