RCBC Leasing lending portfolio expands by 20% with new investor

RCBC Leasing and Finance Corp. (RLFC) sees its lending portfolio expanding up to P7 billion following the recent equity investment from Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL).

Last August 18, RLFC and SMFL executives signed an agreement for the latter’s 30-percent investment in the leasing subsidiary of the Rizal Commercial Banking Corp. (RCBC). SMFL is one of Japan’s largest leasing and financing business with a strong presence in Asia, Europe and the United States.

RLFC president and chief executive officer Jayson L. Mendoza said the fresh capital will support growth in priority sectors such as manufacturing, construction, information technology, renewable energy, and healthcare. The priority sectors are expected to drive the company’s expansion over the next three to five years.

He added that this growth strategy is expected to increase its leasing portfolio by as much a P7 billion by 2026.

“Part of our expansion plans is to capture the Japanese market and most of them are looking (to invest) in Luzon,” Mendoza said, adding that the Visayas and Mindanao are also part of the growth areas.

The leasing company likewise sees opportunities in healthcare financing as many hospital and clinics are upgrading their equipment and investing in new assests.

During the signing ceremonies, SMFL executive managing officer Tomoyuki Tanaka said the capital infusion reflects the company’s strong confidence in RLFC, RCBC, and the Philippine economy.

“Today, we are embarking in a new journey built on a shared vision. With our global expertise and RCBC strong market presence, we are excited to be part of this vibrant market and are committed to exploring more opportunities together. This partnership lays the foundation for long-term growth,” Tanaka said.

SMFL is part of the Sumitomo Mitsui Financial Group, a leading global financial institution offering a wide range of services including leasing, loans, factoring, and asset management.

Meanwhile, RCBC president and chief executive officer Reggie Cariaso said the partnership is aligned with its growth roadmap.

“By combining our expertise with SMFL’s global capabilities, we are strengthening RCBC Leasing’s foundation for expansion and positioning ourselves (RCBC) to capture new opportunities,” the bank president added.

RCBC has a long standing relationship with the parent firm of SMFL Sumitomo Mitsui Banking Corp.(SMBC), a member of the Sumitomo Mitsui Financial Group, is a long-time strategic investor of RCBC.