ECL aims to grow portfolio with Itochu.

SET-listed Eastern Commercial Leasing (ECL) expects its portfolio of auto hire-purchase and leasing loans to increase by more than threefold to 20 billion baht in five years, supported by its recent partnership with Japanese trading house Itochu.

ECL formed a strategic partnership with GMT, a subsidiary of Itochu Corporation, and Premium Co Ltd to accelerate the growth of its auto hire-purchase and leasing business in Thailand.

Under the partnership, ECL is offering 417.8 million capital increase shares to GMT at 1.30 baht apiece. With a total investment of 543.14 million baht, GMT will hold 25.1% of ECL shares following the capital increase.

Premium recently acquired 137.8 million shares of ECL through a rights offering, valued at 179.14 million baht, to maintain its status as a major shareholder with a holding of 25.2%.

ECL has a total loan portfolio of 6.1 billion baht with 21,000 customers. The company aims to increase the portfolio to 7 billion this year with 25,000 customers.

By leveraging the combined expertise, operational knowledge and solid capital foundation of all partners, ECL aims to expand its total loan portfolio to 10 billion baht within three years and 20 billion in five years under its growth strategy, said chief executive Danucha Veerapong.

The company also plans to change its trading symbol on the Stock Exchange of Thailand from ECL to EAST, signifying its commitment to sustainable development, he said.

Yasuhito Kawauchino, chief operating officer of Itochu’s financial and insurance business group, said the latest investment is meant to expand the group’s financial and loan business network in Thailand, capitalising on ECL’s growth potential and aligning with shared operational strategies.

Through this collaboration, Itochu seeks to leverage its expertise in Thailand’s financial and insurance sectors, while enhancing cooperation with its affiliate network, he said.

This approach supports ECL’s expansion and strengthens its competitiveness in Thailand’s used vehicle financing market, said Mr Kawauchino.

Yoichi Shibata, group chief executive and chief operating officer of Premium, said the company and ECL began a strategic investment in 2016.

Premium has since utilised its expertise in providing a range of automotive services, including auto credit, warranty services and auto mobility solutions, to support ECL’s growth.

The collaboration is strengthened by Premium’s extensive network of partnerships with leading Japanese financial institutions, such as Sumitomo Mitsui Banking Corporation, which facilitates access to low-interest funding.

This financial backing supports ECL’s continued expansion and enhances its operational strength in Thailand’s auto loan market, said Mr Shibata.

Credit : https://www.bangkokpost.com/business/general/2963813/ecl-aims-to-grow-portfolio-with-itochu.