Japanese lender Orico to buy 51% stake in Indonesian car loan firm
JAKARTA, NNA - Major Japanese consumer credit supplier Orient Corp. will acquire a majority interest in an Indonesian finance company from Mizuho Bank for some 2 billion yen ($18 million) to tap into the growing local car loan market.
The Tokyo-based firm, known as Orico at home, will buy a 51 percent stake in PT. Mizuho Balimor Finance from the major Japanese bank by the end of March, while PT. Imora Motor, a Honda Motor Co. car distributor, will retain its 49 percent stake, according to an Orico statement released on Thursday.
The joint venture will be renamed PT. Orico Balimor Finance, according to Orico.
Though the Indonesian firm focuses on loans to buyers of new Honda cars, Orico will expand the local arm's business to used vehicles regardless of manufacturer, an Orico spokesman told NNA on Thursday.
Established in 1989 and acquired by Mizuho in 2011, the Indonesian lender has capital of 448 billion rupiah ($32 million) and receivables of around 20 billion yen.
The Indonesian subsidiary will be Orico's third overseas arm following those in Thailand and the Philippines. Orico is planning to foray into Cambodia as well. (NNA/Kyodo)