BPI lends fresh P7 billion to Home Credit Philippines

February 22, 2024 | 12:00am

MANILA, Philippines — Bank of the Philippine Islands (BPI) has extended an additional P7 billion loan to Home Credit Philippines, making it the financing firm’s biggest lender.

BPI president and CEO Jose Teodoro Limcaoco said the Ayala-led bank is further accelerating efforts to elevate financial inclusion in the Philippines via the partnership with the consumer finance company.

“We are glad to support Home Credit by providing tailored solutions to enable their financial inclusion initiatives to thrive and at the same time, improving the quality of life for Filipinos, enabling them to do more. This forms part of our vision to help build a better Philippines – one family, one community at a time,” Limcaoco said.

This marked the third credit facility extended by BPI to Home Credit, following a P1 billion facility in December 2022, P4 billion in August 2023 and an additional P1.5 billion in November 2023 from Robinsons Bank Corp., following its recent merger with BPI.

“This additional loan credit facility to Home Credit, extended by no less than BPI, the first bank in the Philippines and the Southeast Asian region, is a strong testament to the strong performance and stability of Home Credit’s business in the country as a leading consumer finance company,” Home Credit Philippines director and treasurer Zdenek Jankovsky said.

Home Credit is the largest consumer finance company in the Philippines having served 10.4 million customers all over the country in end-2023 through a selection of affordable and accessible financing products.

Home Credit Philippines was issued an AA issuer credit rating with stable outlook by Philippine Rating Services Corp. in 2023 based on its overall creditworthiness and ability to meet all its financial commitments and sustain its growth in its market.

“This local loan credit facility will enable us to better serve our 10-million strong customer base, allowing?us to expand access to credit  opportunities for more Filipinos,” Jankovsky said.

Home Credit has been at the forefront of broadening financial inclusion in the Philippines for more than a decade since it opened its doors in the country in 2013.

It has continuously provided innovative credit opportunities for Filipinos especially to women, young people, and those earning less than P20,000 a month.

HC Consumer Finance Philippines Inc. was acquired by Thailand’s Krungsri (Bank of Ayudhya PCL) and Japan’s Mitsubishi UFJ Financial Group Inc. in June 2023.