Thailand’s Krungsri completes acquisition of 50% of Security Bank’s consumer finance unit

Security Bank Corp. announced Tuesday the completion of its partnership deal with Thailand’s Bank of Ayudhya (Krungsri) for the acquisition of a substantial stake in the local lender’s consumer finance unit.

In a disclosure to the Philippine Stock Exchange, Security Bank said Krungsri has completed the purchase of a 50% stake in SB Finance Company Inc. as the transaction “obtained all the necessary regulatory approvals in the Philippines and in Thailand.”

The partnership deal was announced by Security Bank in 2019. 

The bank said the partnership will make a customer-centric digital lending experience available to all Filipinos and small business owners and will strengthen the relationship between Security Bank and Krungsri, which have MUFG Bank Ltd. as a common shareholder.

“The closing of this transaction comes at a very opportune time.  This strategic partnership with Bank of Ayudhya will help rebuild consumer confidence and enhance financial inclusion at this time of the COVID-19 pandemic,” Security Bank president and CEO Sanjiv Vohra said.

“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 2016, MUFG Bank bought a 20% stake in Security Bank which allowed the local lender to access MUFG’s global expertise and grow its business beyond local borders.

With the partnership with Krungsri, 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.

Krungsri and Security Bank appointed ING Bank N.V. as financial advisor for the transaction. — RSJ, GMA News