MANILA, Philippines —The Ayala Group’s Bank of the Philippine Islands (BPI) and Japan’s Mizuho Bank have renewed a more than decade-long partnership as they pursue a pronounced focus on Japanese companies looking to acquire businesses and broaden their scope in the country.
The memorandum of understanding between the two banking giants comes amid a sharp increase in investments in the Philippines, which hosted about 1,400 Japanese companies in 2023. Around 60 percent of foreign direct investments also came from Japan.
“This renewed agreement between Mizuho and BPI reflects the resilience and growth of our relationship over the years,” said BPI CEO Jose Teodoro “TG” Limcaoco in a statement on Tuesday.
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“We are fortunate that this memorandum of understanding goes beyond the fundamentals by addressing the expansion of Japanese businesses through mergers and acquisitions, asset management, human resources, and [environmental, social and governance] in its broader scope of operation,” said TG Limcaoco, BPI president and CEO.
BPI, the country ’s oldest lender, has been serving the needs of over 500 Japanese companies in the country.
Strategic alliance
These services include trade products, providing investment deals loans for business requirements.
“BPI also supports the well-being of the companies’ employees by facilitating monthly payroll, providing health and insurance coverage, and assisting with retirement planning. Additionally, the bank extends support to their suppliers and customers through supply chain products and solutions,” the Philippine lender said.
BPI and Mizuho entered into a strategic alliance in 2012 to offer a range of financial services to Japanese firms expanding to the Philippines.
The partnership at the time focused on local currency services, introduction of local and sales partners, mutual efforts in developing credit markets, and information exchange on local financial markets and regulations.
“[S]ince then, the business environment has undergone significant changes. With the renewed partnership, it is time to strengthen both our capabilities to better serve a larger customer base,” Yasuhiro Kubota, Mizuho Bank managing executive officer and co-CEO for Asia Pacific, said in the same statement.
“We look forward to more collaborations with BPI as we usher in a brighter era for the Philippines,” he added.