02:17 (GMT +7) - Saturday 24/07/2021

Banking & Finance

Shinsei Bank to acquire 49% of MCredit

Released at: 17:40, 23/11/2016

Shinsei Bank to acquire 49% of MCredit

Photo: MBBank

MCredit's parent company, MBBank, and Japan's Shinsei Bank to establish consumer finance joint venture next year.

by Duy Anh

The Hanoi-based Military Bank (MBBank) signed a deal on November 21 with a Japanese bank to sell a 49 per cent stake in the MCredit Finance Company (MCredit).

MB Bank will sell the 49 per cent to Shinsei Bank, marking the latter’s entry into Vietnam’s unsecured loan market.

The two parties expect to complete the deal in 2017 by establishing a joint venture, the MB Shinsei Consumer Finance Company Limited. The deal is still subject to regulatory approval at this time. 

Speaking at the signing ceremony, Mr. Yukio Nakamura, Vice Chairman of Shinsei Bank, said he believes the joint cooperation between the two will produce new opportunities and value as well as improve MCredit’s competitiveness in the market.

“We appreciate the development potential of the consumer finance market in Vietnam,” he said. “This deal is of major importance to Shinsei Bank in foreign markets.”

Mr. Le Huu Duc, MB Bank Chairman, said the joint venture will be a key factor in MCredit’s successful development, based on Shinsei’s modern technologies and diverse experience. 

“The project will not only benefit MB and Shinsei Bank but also contribute to building a healthy credit system in Vietnam,” he said. “It will also enhance economic cooperation between Vietnam and Japan.”

MCredit, set up in March, was capitalized at about $20.7 million as at June. It will start in the unsecured loan business in December.

It is currently wholly owned by MBBank, after being restructured from the Song Da Finance Company.

Shinsei Bank operates in the banking, investment and insurance sectors. It has more than 50 years of experience in consumer finance through its subsidiary, Shinsei Financial, which occupies third place in the Japanese market in terms of consumer finance and ranks among the best companies for technological solutions in the sector.

MB Bank is a diversified financial group with a network of over 250 transaction points in Vietnam and two foreign branches, in Laos and Cambodia, as well as subsidiaries in securities, insurance and fund and asset management.

According to local market researchers Stoxplus, following a robust surge in 2014 the consumer finance market in Vietnam witnessed its fastest growth in 2015, of 44.1 per cent compared to 18 per cent in 2014. The outstanding loan balance soared from $10.5 billion in December 2014 to $15.12 billion at the end of 2015.

User comment (0)

Send comment