MUFG agrees to sell 25% stake in Home Credit Philippines to affiliate

MUFG and MUFG Bank are entering into an agreement to sell a 25% stake of HC Consumer Finance Philippines (HCPH) to Security Bank, MUFG’s equity-method affiliate commercial bank in the Philippines.

The transaction value is expected to be approximately JPY26.5 billion. Bank of Ayudhya Public Company Limited (Krungsri), MUFG’s consolidated subsidiary commercial bank in the Kingdom of Thailand, will continue to hold a 75% ownership stake in HCPH.

MUFG will remain the ultimate parent company of HCPH, having 20% ownership of Security Bank and 76.88% of Krungsri. The transaction is subject to regulatory approvals, with target closing in the first quarter of 2025.

HCPH is a leading consumer finance company in the Philippines, serving a wide range of financial products to over 11 million users, including POS loans, cash loans, revolving credit, and ancillary products such as insurance and guarantee services. HCPH has established strong relationships with major retailers and brands, with over 15,000 POS locations nationwide.

Through this transaction, MUFG will leverage Security Bank’s local market expertise to further expand the MUFG Group presence in the Philippine retail market. This transaction also represents the second partnership between Krungsri and Security Bank, following their SB Finance joint venture.

MUFG and MUFG Bank aim to strengthen their business in Southeast Asia through the establishment of business platforms in the region in collaboration with partner banks in which MUFG Bank has invested. In executing this strategy, they will continue striving to contribute to growth in Southeast Asia.

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