City Savings buying out IFC in PR Savings Bank
January 12, 2018 – 12:00am
MANILA, Philippines — The investment arm of the World Bank is unloading its interest in Isabela-based thrift bank Philippine Resources Savings Bank in favor of the unit of Aboitiz-led Union Bank of the Philippines.
IFC invested P650 million in PR Savings Bank in March 2014 to enable the World Bank Group to help farmers, teachers and small entrepreneurs in rural areas gain greater access to credit to improve their incomes.
IFC also has exposure in other Philippine banks including BDO Unibank Inc. of Henry Sy, Yuchengco-led Rizal Commercial Banking Corp., Ayala-led Bank of the Philippine Islands, among others.
The source pointed out the amount is on top of the P6.12 billion to be spent by City Savings Bank to acquire the interest of the Ropali Group in PR Savings Bank.
Early this month, UnionBank announced it has signed a share purchase agreement (SPA) with the Ropali Group to acquire 100 percent of the common shares of PR Savings Bank.
Ropali Group chairman and founder Roberto Alingog signed the agreement with City Savings Bank chairman and UnionBank senior executive vice president Eugene Acevedo.
The transaction involves the acquisition of 127.72 million shares owned by the Ropali Group representing 66.27 percent of the total outstanding capital stock of PR Savings Bank.
PR Savings Bank is a member of the Ropali Group of Companies, a mid-sized conglomerate which is a leading player in the motorcycle and agricultural machinery trade.
PR Savings Bank is the 15th largest thrift bank in the country, with assets of P13.2 billion as of end-September. It has 102 offices, mostly in Luzon. The bank is presently engaged in extending motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers, mostly from the mass-market segment.
UnionBank is the country’s 9th largest bank in terms of assets with P488.05 billion, while City Savings Bank is the 6th largest thrift bank in terms of assets with P71.7 billion as of end-September.
City Savings Bank has 106 offices nationwide.
“This acquisition will expand our mass market reach, consistent with our vision to promote inclusive growth in the country,” UnionBank president and CEO Edwin Bautista earlier said.