Sumitomo Mitsui Banking Corporation (SMBC) has increased its stake in Rizal Commercial Banking Corporation (RCBC) from 4.999% to 20.0%, providing an injection of PhP 27.126 billion (approximately US$ 460.78 million) in capital.

SMBC’s strategic investment is said to be part of RCBC’s capital raising plan to support long-term sustainable asset growth and investments in technology, cybersecurity, and human resources.

Both parties are working expeditiously towards the signing of definitive transaction documents and obtaining the relevant regulatory approvals.

The transaction, when completed, is expected to result in opportunities for collaboration in areas such as corporate banking, sustainable finance, leasing, consumer lending, and digital.

SMBC is one of the largest banks in Japan and is the commercial banking arm of Sumitomo Mitsui Financial Group. SMBC’s RCBC investment is in line with its strategy to expand in the Philippines, Indonesia, Vietnam, and India.

RCBC also announced earlier this year that its three digital platforms — DiskarTech, RCBC Digital and ATM Go — recorded a 205 percent year-on-year increase in revenue.