MICROCAPITAL STORY: Rizal Commercial Banking Corporation (RCBC) of the Philippines to Pay USD 7.8 million for a 99% Share of JP Laurel Rural Bank

Rizal Commercial Banking Corporation (RCBC) plans to infuse a total of PHP 375 million (USD 7.8 million) into JP Laurel Rural Bank Corporation over three years starting in 2009 through a shareholder advance facility, thus buying 99% of the rural bank. RCBC has set a date of February 13, 2009 for the first installment of PHP 125 million (USD 2.6 million). Existing shareholders will end up owning just 1% of the rural bank once the RCBC acquisition is completed. No information is available as to the terms of the sale. The acquisition is still pending approval by the Monetary Board of Bangko Sentral ng Pilipinas (BSP), the Central Bank of the Philippines.

In February 2009, RCBC announced that its board of directors approved a plan for the acquisition of JP Laurel Rural Bank, Inc, a rural bank in the Batangas, Philippines, which will pave its entry into the microfinance business. For the MicroCapital article covering the initial stages of this acquisition please click here. Once acquired, JP Laurel Rural Bank’s 10 branches will create a base for microfinance operations in Luzon.

JP Laurel Rural Bank, which is name after President Jose P. Laurel, does not report to the MIX Market, the microfinance information clearinghouse, nor do they maintain a web presence, but contact information is included below.

The RCBC is commercial bank in the Philippines with a total consolidated assets of about PHP 270.23 billion (USD 5.6 billion) in 2008. Beginning as a small development bank in 1960, RCBC has expanded rapidly into the seventh largest lender in the Philippines today with a return on assets of 1.4 percent and loans totaling PHP 105.8 billion in 2007.

By: Andrea Chu

ADDITIONAL RESOURCES

JP Laurel Rural Bank Corporation
Address: Pres. Laurel Hi-way, 4232 Tanauan, Batangas
President: Nestor L. Tolentino
Tel: (043) 778-4444
Fax: (043) 778-4201
E-mail: laurelbank@pacific.net.ph or laurelrb@rbap.org

Business World Online, March 31, 2009: “RCBC continues to eye banks for acquisition

BusinessWorld: I.T. Matters, February 12, 2009: “RCBC to own 99% of rural bank

Microcapital Story, February 23, 2009: “RIZAL Commercial Banking Corporation (RCBC) Announces Tentative Plan to Acquire JP Laurel Rural Bank for $8m to Establish Its Microfinance Business

Similar Posts:

1 comment
  1. […] MicroCapital.org Brief, March 31, 2009: Rizal Commercial Banking Corporation (RCBC) of the Philippines to Pay USD 7.8 Million for a 99% Share of JP Laurel Rural Bank, https://www.microcapital.org/microcapital-story-rizal-commercial-banking-corporation-rcbc-of-the-phil… […]

Comments are closed.