Philippine National Bank (PNB) has announced plans to wind down the business of its joint venture with Japanese firm Mizuho Leasing.

PNB, which is led by tycoon Lucio Tan and is among the top players in the banking space, said that the business is being closed due to the impact of the pandemic.

In a stock exchange disclosure, the bank said that in a meeting, which was held last week, its board has approved the shortening of the corporate terms of the PNB-Mizuho Leasing and Finance Corporation (PMLFC) to 31 March 2024.

“PNB and Mizuho Leasing mutually agreed to wind down operations of PMLFC due to the impact of the COVID-19 pandemic to the operations of the joint venture company and the domestic leasing industry,” the bank’s statement read.

“The winding down process of the joint venture company is expected to be completed within the next twenty-four (24) months,” it added.

PNB and Mizuho Leasing-owned joint venture started operations in the Philippines in 1998. Earlier it was known as PNB-IBJL Leasing and Finance Corporation.

Some of its offerings include finance leases, operating leases, term loans and receivables discounting.

The closure is subject to approval from regulatory authorities. In 2021, PNB made around PHP500m investment in its joint venture with Japanese firm, increasing its stake in it to 83.5% from 75%.