MUFG, Ayudhya to tap into Philippine consumer finance market
BANGKOK, NNA - Japan's MUFG Bank Ltd. is gearing up to expand its business in the Philippines by purchasing a 50 percent stake in a local consumer lender through its Thai subsidiary, Bank of Ayudhya Public Co.
Ayudhya, the largest provider of unsecured retail loans in Thailand, will inject an estimated sum of 1.82 billion pesos ($35 million) into the Philippines' fifth-largest consumer finance company, SB Finance Co., a subsidiary of the country's sixth-largest bank, Security Bank Corp., according to a statement released Friday.
MUFG Bank, which owns a 20 percent interest in Security Bank, made the deal public on Friday.
Ayudhya, known as Krungsri in Thailand, plans to complete the deal by the end of the year provided approval is obtained from regulatory authorities, the statement said.
MUFG Bank has also invested in PT. Bank Danamon Indonesia Tbk and Vietnam Joint Stock Commercial Bank for Industry and Trade, or VietinBank, as part of efforts to build a network of banking footholds within Southeast Asia. (NNA/Kyodo)