Security Bank and Thailand’s Bank of Ayudhya have jointly approved a P3-billion fresh capital infusion into their local joint venture, SB Finance, putting the consumer financing arm in a better position to ride on the country’s economic recovery.
SB Finance will issue 25.85 million new common shares that will be evenly split between Security Bank and Krungsri, which have Japanese financial giant MUFG Bank Ltd. as a common shareholder.
“The capital infusion of Security Bank and Krungsri into SB Finance is an expression of support in the recovery of the Philippine economy. This shows that SB Finance is ready to help foster economic growth as businesses begin to recover from the effects of the pandemic. The capital infusion further cements Security Bank’s strategic partnership with Krungsri to help rebuild consumer confidence and foster financial inclusion,” Security Bank president and CEO Sanjiv Vohra said in a statement.
“As we anticipate the recovery of the economy and the resurgence of pent-up demand in the consumer finance segment, the additional capital will be used for business expansion … It will also be used to fund investment in the latest cloud-based technology … and the strengthening of internal capabilities,” said SB Finance president and CEO Abbie Casanova.