BDO Unibank, Inc. Incorporates a New, Privately-Held Finance Company, BDO Finance Corporation
January 27, 2020 at 12:56 am
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BDO Unibank, Inc. announced that it entered into an agreement to sell a controlling stake in its publicly-listed subsidiary, BDO Leasing and Finance (BDOLF), to a third party as part of the Bank's restructuring of its leasing business. 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. 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 Corporation (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. Meanwhile, clients who now find regular bank loans more attractive vis-à-vis leases can access BDO's wide range of products and services.
BDO Unibank, Inc. is a Philippines-based universal bank. The Company's segments include Commercial banking, Investment banking, Private banking, Leasing and financing, Insurance, and Others. The Commercial banking segment includes lending (corporate and consumer), trade financing and cash management services for corporate and retail customers. The Investment banking segment provides services to corporate clients outside the traditional loan and deposit products. The Private banking segment provides traditional and non-traditional investment and structured products to high-net-worth individuals and institutional accounts. The Leasing and financing segment provides direct leases, sale and leaseback arrangements and real estate leases. The Insurance segment is engaged in insurance brokerage and the life insurance business by providing protection, education, savings, retirement and estate planning solutions to individual and corporate clients through life insurance products and services.
BDO UNIBANK, INC. 
