Billease, a consumer finance platform, has secured a ₱1-billion credit facility from Philippine National Bank (PNB), one of the country’s largest universal banks.
The agreement gives Billease additional funding to expand its consumer lending business. It also allows PNB to enter the growing retail credit market without directly managing thousands of small loans.
The facility uses the Personal Property Security Registry (PPSR), a government registry established under the Personal Property Security Act, or Republic Act 11057. Through the registry, PNB holds the first claim over a pool of consumer loans issued by Billease.
“This track record gave us confidence to establish this relationship at a meaningful scale,” said Roberto Fo. Abastillas, executive vice president and head of the Institutional Banking Sector at PNB. “We see this as the beginning of a broader partnership and look forward to exploring additional opportunities to work together.”
Under the agreement, Billease must pledge customer loans worth more than the amount it borrows from PNB. The company will regularly replace loans that have been repaid or have fallen behind with new loans.
Customer payments tied to the facility will also follow a fixed order, with PNB receiving payment first. The setup is designed to protect the bank throughout the agreement.
For PNB, the deal spreads risk across many borrowers making repayments over shorter periods. It also provides access to retail consumer lending through Billease’s existing platform and loan portfolio.
Billease said the facility is part of its plan to rely more on Philippine banks and other local partners to finance its growth. AlphaPrimus Advisors served as transaction adviser for the deal.
“We are deliberately expanding our local funding base here at home, with the country’s leading banks, because that allows us to keep serving more Filipinos with affordable, responsible credit. PNB coming on board is a strong signal; it says the largest institutions in the market are ready to fund this kind of lending when it is done with discipline,” said Georg Steiger, co-founder and CEO of Billease.
The agreement follows Billease’s acquisition of a rural bank. The company expects the acquisition to allow it to add products such as savings accounts and deposits while reducing its funding costs.