BPI renews business cooperation agreement with Mizuho Bank to boost Japanese investments in the Philippines

The Bank of the Philippine Islands (BPI) has renewed its banking alliance with Mizuho Bank, Ltd. (Mizuho Bank), expanding and strengthening the scope of business cooperation between the two banks.

Mizuho Bank is a leading global bank with one of the largest customer bases in Japan and an extensive network of financial and business centers. BPI and Mizuho Bank are aligned in their mission to become the most trusted financial partner for their clients.

In 2012, both banks entered into an agreement to offer financial services to Japanese companies considering entry to the Philippines. The collaboration focuses on local currency services, introduction of local and sales partners, mutual efforts in developing credit markets, and information exchange on local financial markets and regulations.

“This renewed agreement between Mizuho and BPI reflects the resilience and growth of our relationship over the years. We are fortunate that this Memorandum of Understanding goes beyond the fundamentals by addressing the expansion of Japanese businesses through mergers and acquisitions, asset management, human resources, and ESG in its broader scope of operation,” said TG Limcaoco, BPI President and CEO.

As of 2023, there are about 1,400 Japanese companies operating in the Philippines. On the other hand, 60% of the country’s foreign direct investments are from Japan.

“Our first agreement with BPI was signed in 2012, and since then, the business environment has undergone significant changes. With the renewed partnership, it is time to strengthen both our capabilities to better serve a larger customer base. We look forward to more collaborations with BPI as we usher in a brighter era for the Philippines,” said Yasuhiro Kubota, Mizuho Bank Managing Executive Officer and Co-CEO for Asia Pacific.

BPI has been servicing more than 500 Japanese companies in the country, offering trade products, providing investment opportunities, and lending for capital expenditures and working capital requirements. BPI also supports the well-being of the companies’ employees by facilitating monthly payroll, providing health and insurance coverage, and assisting with retirement planning. Additionally, the bank extends support to their suppliers and customers through supply chain products and solutions.

“BPI’s journey with Mizuho Bank began in 2012 and since then, the partnership flourished, leading to a commitment with mutual growth and success. Our joint venture with Tokyo Century has only strengthened our bond with Mizuho Bank, fortifying the relationship that originated from the initial Memorandum of Understanding,” said John-C Syquia, BPI Institutional Banking Head.

“May this renewed commitment pave the way for a future of convenient success, shared goals, and unwavering partnership.”

The Philippines is expected to enjoy stable economic development as the country continues its upward trajectory from pandemic recovery. Consumer spending growth may recover amid the anticipated easing of inflation this year.

Furthermore, investment spending is poised for growth, following adjustments in the construction sector and the likelihood of interest rates having reached their peak. This conducive environment may encourage businesses in becoming more aggressive with their capital expenditures, reflecting a promising outlook for growth amid lower inflation.