Sumitomo Mitsui seals 30% stake in RCBC Leasing
Sumitomo Mitsui Finance and Leasing Co. Ltd. (SMFL) has completed its acquisition of a 30-percent stake in the leasing arm of Rizal Commercial Banking Corp., giving the Japanese firm a bigger foothold in the Philippines.
On Thursday, the Yuchengco-led bank said SMFL had secured the necessary regulatory approvals and permits to complete the transaction.
Following the acquisition, RCBC Leasing and Finance Corp. (RLFC) is now an equity method affiliate company of SMFL. The leasing firm was previously wholly owned by RCBC.
RLFC president and CEO Jayson Mendoza said the investment would support the company’s expansion over the next three to five years.
The company is targeting growth in priority sectors such as manufacturing, construction, information technology, renewable energy—including electric vehicles and solar panels—healthcare, logistics and auto leasing.
“This investment positions us well for the opportunities ahead and strengthens our capabilities that will drive our business forward,” Mendoza said.
For SMFL, the investment expands its business base in the Philippines, where it expects strong economic growth and increasing demand for financial services.
The Japanese firm plans to combine its sales and management expertise with RCBC’s customer base and RLFC’s team structure as it grows its local operations.
The transaction also deepens RCBC’s ties with Japan’s Sumitomo Mitsui group.
Sumitomo Mitsui Banking Corp. (SMBC), another member of the group, currently owns a 24.46-percent stake in RCBC and serves as its partner bank in the Philippines.
SMFL said it remained committed to expanding its global business through collaboration with SMBC Group and other partners.
RLFC, which was incorporated in 1987, is engaged in financial leasing and operating leases through its wholly owned subsidiary.
It maintains a nationwide presence with five offices in Luzon, Visayas and Mindanao.
