ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business Deals

Bank of Yokohama invests in Indonesian lender Perdania

Regional lender and Daido join Resona in supporting client expansion into Southeast Asia

Skyscrapers light up bustling Jakarta. Indonesia's banking sector is drawing investment from some of Japan's biggest lenders.   © Reuters

TOKYO -- Japanese financial institutions Bank of Yokohama and Daido Life Insurance will take stakes in Indonesia's Bank Resona Perdania, which is partially owned by compatriot Resona Bank, positioning themselves to help client companies expand into Southeast Asia's most-populous country.

Bank of Yokohama will acquire a 30% stake while Daido Life Insurance will buy roughly 15% of the shares. At the same time, Resona Bank will raise its 43% ownership to about 48% in a deal to be signed on Monday, making the bank more than 90%-Japanese owned. 

With the middle-class rapidly expanding in Indonesia, steady economic growth is expected down the road. The move could spur other regional players to buy into overseas lenders as they struggle for a path to survival amid shrinking demand at home.

The transaction, the value of which has not been disclosed, is expected to be completed by the end of March. The shares will be acquired in part from a subsidiary of Hong Kong's Bank of East Asia.

Perdania mainly serves Indonesian small and midsize companies as well as Japanese corporations that do business in the country.

More small and midsize Japanese companies are moving into Indonesia to try to capture demand in an economy growing by over 5% a year. While many Japanese regional banks enter into partnerships with emerging-market lenders to support their clients' overseas expansion, few go so far as forming capital ties.

Bank of Yokohama's Indonesian investment follows a move this summer by MUFG Bank, Japan's biggest lender, to double its stake in Bank Danamon.

Bank of Yokohama, part of Tokyo-based Concordia Financial Group, will gain representation on Perdania's board and management team.

Resona Bank is part of Resona Holdings, while Daido Life is owned by T&D Holdings.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media