Philippine National Bank (PNB) head by bankero Wick Veloso is ending its joint venture with Mizuho Leasing Ltd. of Japan due to the impact of the COVID-19 pandemic.
The Lucio Tan-led bank’s Board of Directors approved the proposal to amend the Articles of Incorporation of PNB-Mizuho Leasing and Finance Corp. (PMLFC) to shorten its corporate term to March 31, 2024.
“PNB and Mizuho Leasing mutually agreed to wind down operations of PMLFC due to the impact of the COVID-19 pandemic to the operations of the joint venture company and the domestic leasing industry,” PNB said.
The joint venture leasing and financing firm started its operations in the Philippines in 1998, providing services including finance lease, operating lease, term loans, and receivable discounting.
PNB controls 75 percent of PMLFC, formerly PNB-IBJL Leasing and Finance Corp., while Mizuho Leasing Co. owns 25 percent.
Tan’s PNB approved the infusion of up to P515 million in additional capital to PMLFC in February last year in anticipation of opportunities in the leasing business amid the government’s massive infrastructure build up.
This was supposed to raise PNB’s stake on the joint venture to 83.5 percent from 75 percent.