Security Bank gets P1.5 billion from sale of financing arm

MANILA, Philippines — Security Bank Corp. received P1.53 billion from the sale of its 50 percent stake in its consumer finance subsidiary to Thailand’s Bank of Ayudhya Public Co. Ltd., commonly known as Krungsri.

In a disclosure to the Philippine Stock Exchange (PSE), Security Bank first vice president Michael Gamo said Krungsri acquired 7.075 million shares of SB Finance Company Inc. owned by the bank at P216.08 per share.

Dutch financial giant ING Bank acted as financial advisor for the transaction.

SB Finance is expected to grow its loan portfolio and loan products suite as the collaboration builds on the strengths of Security Bank in the country’s unsecured personal loan segment.

The partnership is set to offer various loan products that cater to personal and small business needs of the Filipino market, while building on Krungsri’s expertise as the number one consumer finance provider in Thailand.

Security Bank and chief executive officer Sanjiv Vohra earlier said the closing of the transaction involving the entry of Krungsri in SB Finance Co. Inc. comes at a very opportune time, particularly with the strong presence of the Thai firm in member countries of the Association of Southeast Asian Nations (ASEAN) amid the coronavirus disease 2019 or COVID-19 pandemic.

Vohra added the strategic partnership with Bank of Ayudhya would help rebuild consumer confidence and enhance financial inclusion amid the COVID-19 pandemic.

“We are confident that by leveraging on Krungsri’s strength in the ASEAN retail finance market and in consumer risk management, we can contribute meaningfully to the economic recovery of the Philippines,” Vohra said.

In August last year, Security Bank entered into a strategic partnership with Krungsri to build on their strengths in the unsecured personal loan segment by jointly exploring opportunities in other areas including credit cards, auto loans, motorcycle loans, and insurance.