PNB to inject P515M in infra-focused financing unit
Tycoon Lucio Tan-led Philippine National Bank (PNB) is infusing up to P515 million fresh equity in PNB-Mizuho Leasing and Finance Corp., beefing up the latter’s working capital to support infrastructure-building activities in the country.
The additional equity would increase PNB’s stake in PNB-Mizuho Leasing to 83.5 percent from 75 percent, PNB disclosed to the Philippine Stock Exchange on Monday.
“We are putting in additional capital into PNB-Mizuho Leasing and Finance Corp. to improve the ability of our leasing business to take advantage of opportunities in the construction and related industries to the infrastructure programs of the government,” PNB president Wick Veloso said in a text message.
Given the focus of the government in continuing its “Build, Build, Build” program, PNB is upbeat on prospects in the leasing business.
“We regularly review the businesses and continue to identify ways to be more agile as a bank. We see our leasing business becoming stronger as many areas around the country will likely ease quarantine rules. The additional capital will help the business support companies in transportation and infrastructure,” Veloso said.
PNB’s board of directors has approved the P515-million infusion, albeit still subject to regulatory and other necessary approvals.
Formerly known as PNB-IBJL Leasing and Finance Corp., PNB-Mizuho Leasing was incorporated in 1996 under the auspices of the provident fund of PNB. It was largely inactive until it was used as the vehicle for a venture among PNB, IBJ Leasing Co Ltd., and Industrial Bank of Japan, now called Mizuho Corporate Bank. —Doris Dumlao-Abadilla INQ
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