BDO Leasing transfers assets to BDO Finance

Listed BDO Leasing and Finance Inc. has transferred 27.02 percent of its assets to sister company BDO Finance Corp. In a disclosure on Thursday, BDO Leasing announced that the transfer of the assets, which include home mortgage receivables, was completed on October 21, three months after shareholders approved it and almost 10 months after its board of directors greenlighted it.

“The transfer of assets is part of the restructuring of the leasing business of BDO [Unibank Inc.].

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The restructuring is aimed at optimizing the financial needs of clients in light of new accounting regulations covering lease transactions,” BDO Leasing said. International Financial Reporting Standard 16, which took effect on January 2019, requires leases to be recognized on the balance sheet, similar to a loan facility, according to the firm.

“This makes lease transactions a less attractive option to corporate borrowers compared to the previous arrangement,” it said. Under the restructuring plan, BDO Leasing said, BDO had incorporated the new, privately held BDO Finance to provide customers continued access to lease products and services.

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Article and Photo originally posted by Manila Times last October 23, 2020 and written by Mayvelin U. Caraballo.

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