BDO sells leasing arm, tender offer underway

/ 10:56 AM January 27, 2020

BDO prexy Nestor Tan

The country’s largest lender BDO Unibank is selling its controlling stake in publicly-listed subsidiary BDO Leasing and Finance (BDOLF) to an unnamed third party as part of the restructuring of its leasing business.

As required by regulation, a tender offer will be undertaken by the buyer to provide minority shareholders an opportunity to sell their BDOLF shares. The timetable and details of the tender offer will be announced by the buyer in due course, BDO disclosed to the Philippine Stock Exchange on Monday.


The restructuring of BDO’s leasing business is being undertaken to “optimize the financial needs of clients in light of new accounting regulations covering lease transactions,” the bank said.

International Financial Reporting Standard (IFRS) 16, which took effect in January 2019, requires leases to be recognized on-balance sheet, similar to a loan facility. This makes lease transactions a less attractive option to corporate borrowers compared to the past.


Under the restructuring process, BDO has incorporated a new, privately-held finance company, BDO Finance Corp. (BDO Finance), to provide customers continuing access to lease products and services. Additionally, BDO Finance will assume current lease transactions booked in BDOLF to provide continuity to existing clients.

“We wish to reassure BDOLF clients that their financing requirements will continue to be serviced, and there will be no effective change in their existing lease arrangements that will be assumed by BDO Finance,” said BDOLF president Roberto Lapid.

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: BDO Finance Corp., BDO Leasing and Finance, BDO Unibank, BDOLF, Roberto Lapid
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.