PSBank, Sumitomo joined forces for motorcycle financing
Posted on September 13th, 2009
The Bangko Sentral ng Pilipinas (BSP) gave the approval for the Philippine Savings Bank (PSBank) – Sumitomo Corp. joint venture. The venture would see PSBank investing up to P800 million in motorcycles lending and leasing with Japanese trading giant Sumitomo Corp.
PSBank’s investment would account for about 40% of the venture of the P2 billion capitalization of the proposed Sumitomo-PSBank venture. The bank would be providing financing for all motorcycle brands in easy-to-acquire terms through its Metro Manila branches. PSBank tied up with Sumitomo as there are only few financial institutions which serve the niche market of motorcycle financing. It aims to tap the market as it hopes to provide the great number of Filipinos an affordable means of transport.
Perfecto Ramon Dimayuga, chief finance officer of PSBank, said they will provide the BSP with the list of all members of the board and senior management of the joint venture, copy of the Securities and exchange Commission-registered articles of incorporation and by-laws as well as written conformity of the investee company of the BSP to examine its books.
The two companies aims to provide additional credit to the motorcycle industry, as it sees the market expanding and an encouraging increased investments by Honda, Yamaha and other major motorcycle assemblers.
Sumitomo is an international trading company with a wide and diverse range of business interest. Its assets amount to about $81 million and have a network of global partners, offices and subsidiaries in Asia, the Americas and China.
The company’s investments in Asia include countries like China, Taiwan, Thailand, Singapore, Korea, Malaysia and Philippines, among others. Sumitomo has an established considerable experienced when it comes to motorcycle and vehicle leasing and financing, through its finance companies in Indonesia and Thailand.
