SECURITY Bank Corp. and Thailand’s Bank of Ayudhya (Krungsri) have obtained their respective internal approvals to infuse additional capital to SB Finance amounting to P3 billion.
In a disclosure on Tuesday, Security Bank said SB Finance will issue 25,850,000 common shares that will be subscribed to on a 50:50 basis by Security Bank and Krungsri upon receipt of requisite regulatory approvals.
Security Bank and Krungsri both have MUFG Bank Ltd. as a common shareholder.
“The capital infusion of both Security Bank and Krungsri into SB Finance is an expression of support in the recovery of the Philippine economy. This move shows that SB Finance is ready to help foster economic growth as businesses begin to recover from the effects of the pandemic,” Security Bank President and Chief Executive Officer (CEO) Sanjiv Vohra said.
“This additional capital infusion further cements Security Bank’s strategic partnership with Krungsri to help rebuild consumer confidence and foster financial inclusion,” he added.
For his part, SB Finance President and CEO Abbie Casanova said: “As we anticipate the recovery of the economy and the resurgence of pent-up demand in the consumer finance segment, the additional capital will be used for business expansion as we are set to launch multiple products this year starting with Car-4-Cash, a proven successful loan product offering of Krungsri in Thailand…