Tag: MUFG

Manila, Philippines – Security Bank has announced that it has entered into an agreement to acquire a 25% stake in HC Consumer Finance Philippines, Inc. (HCPH), also known as Home Credit Philippines. This strategic move underscores Security Bank’s commitment to enhancing its consumer finance capabilities and expanding its market presence.

Through the agreement, Security Bank will purchase the 25% ownership stake in HCPH from MUFG Bank Ltd. for approximately PHP11b. Krungsri (Bank of Ayudhya PCL and its business units) will continue to hold a 75% ownership stake in HCPH and remain the majority shareholder.

This transaction marks eight years of the Security Bank and MUFG strategic alliance, which started in 2016. It also represents the second partnership between Security Bank and Krungsri, following their SB Finance, Inc. joint venture. 

The acquisition aligns with Security Bank’s strategic vision to become the most customer-centric bank in the Philippines. The transaction is subject to regulatory approvals, with target closing in the first quarter of 2025.

Sanjiv Vohra, president and CEO at Security Bank, said, “As we welcome Home Credit into the Security Bank family, we’re excited by the strategic benefits this acquisition brings. This is a tremendous opportunity to leverage synergies, offer innovative lending solutions, and support financial inclusion. We look forward to driving growth and delivering value to our stakeholders together.”

Meanwhile, Yasushi Itagaki, group COO-I and head of global commercial banking business at MUFG, commented, “We are delighted to enter into this agreement with Security Bank as we believe that Security Bank will complement Krungsri in Home Credit Philippines. Security Bank’s on-the-ground presence and understanding of the local market will bring forth continued growth for Home Credit Philippines.”

Philippines – Globe Fintech Innovations, Inc. (Mynt), the parent company of GCash, has announced new strategic investments from Ayala Corporation and Mitsubishi UFJ Financial Group (MUFG), elevating its valuation to $5 billion—more than double the $2 billion valuation from 2021.

In a disclosure released Thursday, Ayala Corporation, via its subsidiary AC Ventures Holdings, Inc., will acquire an additional 8% stake in Mynt for approximately ₱22.9 billion, valuing Mynt at ₱286.4 billion. This boosts Ayala’s ownership of Mynt to around 13%. 

According to Ayala, its increased investment in Mynt aligns with its strategy to reallocate capital to high-performing ventures. Boosting its stake in Mynt enables Ayala to capitalise on GCash’s robust long-term growth potential.

Concurrently, Mitsubishi UFJ Financial Group (MUFG), via its consolidated subsidiary MUFG Bank, Ltd., will also acquire an 8% stake following the signing of binding investment agreements.

Martha Sazon, president and CEO of Mynt, said, “We are thrilled to welcome MUFG as a new strategic partner. With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially for the underserved. Alongside this, Ayala’s unmatched commitment to Philippine economic growth and development and its expertise in multiple industries will accelerate GCash’s mission.” 

Meanwhile, Yasushi Itagaki, senior managing corporate executive and head of the global commercial banking business group at MUFG, said, “GCash is an indispensable infrastructure for the everyday lives of Filipinos, and we are delighted to join Mynt as a strategic investor to support the growth of the company. With our investment, we are excited to expand our contribution to the ongoing development of the Philippines’ digital economy and financial inclusion.”

Cezar Consing, president and CEO of Ayala Corporation, also commented, “We like the long-term growth prospects of Mynt. It is a clear leader in a fast-growing space and a key contributor to the Philippines’ economic growth. Mynt is valuable because it enables underserved Filipino consumer and business segments to thrive.” 

With Morgan Stanley serving as Mynt’s exclusive financial advisor, the proposed investment is contingent upon the execution of definitive transaction documents and the fulfilment of customary closing conditions. Upon completion, MUFG will become a shareholder in Mynt, while Ayala will increase its existing stake.

Mynt has experienced unprecedented growth in its user base and transactions over the past four years, driven by innovations and a focus on customer experience. This new investment will enhance financial inclusion and spur economic growth in the Philippines. In 2023, Mynt recorded a net income of PHP 6.7 billion.