BDO joins Mitsubishi financing venture
THE COUNTRY’S largest lender Banco de Oro Unibank has teamed up with three Japanese firms to provide financing services to buyers of Mitsubishi vehicles, upbeat on growing consumer affluence in this nation of over a hundred million people.
BDO Unibank Inc. has struck a joint venture deal with car distributor Mitsubishi Motors Philippines Corp. (MMPC), trading firm Sojitz Corp. and credit firm JACCS Co. Ltd. (JACCS) to provide financing services to individual and corporate buyers of Mitsubishi Motors vehicles.
This investment will be made through BDO’s subsidiary, BDO Leasing and Finance Inc. (BDOLF), which will own 40 percent of the joint venture company while Mitsubishi, Sojitz, JACCS will hold the remaining 60 percent stake, based on a disclosure to the Philippine Stock Exchange on Friday.
The joint venture, to be named MMPC Auto Financial Services Corp., is seen harnessing the complementary strengths of the joint venture partners “to take advantage of the sustained growth in vehicle sales on the back of increasing consumer affluence and a growing population.”
BDO’s wide distribution network and industry leadership are seen to complement Mitsubishi Motors’ established presence in the automotive industry, while both Sojitz and JACCS are expected to contribute their international perspective and knowledge base on consumer credit to the business.
This Sy family-led local bank has one of the largest distribution networks, with more than 1,000 operating branches and over 3,000 automated teller machines (ATMs) nationwide. It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
The local unit of Mitsubishi Motors is the second largest vehicle distribution company in the country while JACCS is a consumer credit services company.
Sojitz, on the other hand, has over 150 years of track record as a general trading company. It is involved in diverse sectors such as automobiles, plants, energy, mineral resources, chemicals, foodstuff resources, agricultural and forestry resources, consumer goods, and industrial parks.
