BPI Leasing takes in Japanese partner

MANILA, Philippines - The Bank of the Philippine Islands (BPI) has formed a joint venture with Century Tokyo Leasing Corp. (CTL), a Japanese financing company with  strong presence in Asia, to service growing demand for leasing and financing in the Philippines.

In a report to the Philippine Stock Exchange, BPI said the joint venture, BPI Century Tokyo Lease & Finance Corp., would result from CTL acquiring 49 percent of BPI Leasing Corp. while the remaining shares retained by BPI.

The joint venture will combine CTL’s resources and expertise with BPI’s proven record of growth and success in the Philippines, BPI said.

BPI Leasing is a subsidiary of BPI, and offers services including financial leases, operating leases, loans, and receivables discounting facilities to corporations belonging to various industries. It also owns BPI Rental Corp., which handles and manages its rental business for vehicles, machineries and equipment.

BPI president and chief executive officer Cezar P. Consing said the strategic partnership is taking place at a time of consumer-led growth in the Philippine market.

Consing explained that the client portfolios of the two principal entities are complementary from both geographical and sectoral points of view. The joint venture plans to implement innovations, reach new customers and enhance services to BPI Leasing’s valued customers.

With both shareholders’ substantial expertise and capital resources, the joint venture will be well positioned to expand its role as a leader in an increasingly competitive and dynamic market environment.

 “The creation of this joint venture recognizes our success in the Philippine market and its potential for further growth. BPI has a strong track record of partnerships with international financial institutions, like our BPI-Mitsui Sumitomo Insurance partnership for non-life insurance and BPI-Philam for life insurance,” Consing said.

CTL president and chief executive officer Shunichi Asada said the transaction underscores CTL’s strategy, particularly in Asia, of partnering with local entrepreneurs and industry leaders as part of their strategic investments.

“Finding a reliable and recognized Philippine partner will help us serve the Filipino consumers and help realize the potential of the market. I am especially optimistic about the relationship this joint venture enables within CTL’s international business,” Asada said.

CTL is one of the largest leasing companies in Japan, and with an extensive distribution network operating in over 10 countries worldwide.

The Japanese firm offers an extensive range of products that includes leasing and installment sale of information and communications equipment, automobile and car rental services, and highly specialized financing in the fields of real estate, vessels, aircraft, healthcare, and energy.