Philippines: UnionBank Ventures into Microfinance with Acquisition of FairBank

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Dec 2016
Philippines, December, 27 2016 - UnionBank made the deal through its two wholly-owned subsidiaries Union Properties Inc (UPI), and City Savings Bank (CitySavings) that both obtained monetary board approval to finalize the joint acquisition of a majority stake in the 11-branch FairBank.

Conglomerate Union Bank of the Philippines (UnionBank) has forayed into rural and microfinance banking with the acquisition of First-Agro Industrial Rural Bank (FairBank).

UnionBank made the deal through its two wholly-owned subsidiaries Union Properties Inc (UPI), and City Savings Bank (CitySavings) that both obtained monetary board approval to finalize the joint acquisition of a majority stake in the 11-branch FairBank.

Financial details of the deal were not disclosed.

Established in 1999, FairBank has more than 200 employees and total resources of more than $7.2 million (P360 million). It has more than 10,000 borrowers and a depositors’ base of over 20,000.

CitySavings is the thrift banking arm of UnionBank, while UPI is engaged in managing the buildings and other real properties which are either wholly- or partially-owned by UnionBank.

After the acquisition, FairBank will remain structurally separate and will maintain and keep its company name and organization as well as its brand identity as a “dependable partner for a brighter future.”

“We are thrilled about this acquisition because it serves as a first step in serving our unbanked countrymen,” said Eugene Acevedo, CitySavings chairman of the board and UnionBank senior executive vice president.

FairBank president, CEO and chairman Dinah Fernan-Verallo said FairBank, from its inception, has always been aimed at serving the Microfinance community and now gears for more traction.

“With this partnership, we hope to further the reach of our services to the under-served communities around the Visayas and beyond. This partnership shall strengthen our tenacity and open new possibilities,” Fernan-Verallo said.



Source : DealStreetAsia
 

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