MANILA, Philippines - BDO Leasing and Finance Inc. obtained the Securities and Exchange Commission’s approval to issue P15 billion worth of short-term commercial papers.
Proceeds from the issuance will be used to pare down debt and for relending.
The issue was issued a PRS 2 minus rating by the Philippine Ratings Services Corp., which is defined as “above average capability for payment of commercial paper issue on both interest and principal.”
BDO Leasing, a significant player in the financing industry, continues to benefit from synergies, name recognition and marketing referrals provided by the BDO Group of retail tycoon Henry Sy.
The BDO Group has an extensive distribution network, with over 770 operating branches as of end-June this year.
As of end-2011, BDO was the country’s largest bank in terms of resources, deposits and assets under management.
In the first nine months, BDO Leasing grew its net income by 36.7 percent to P297 million, mainly due to successful cost-cutting measures. Gross revenues rose nine percent to P1.3 billion while total operating expenses remained relatively unchanged.
BOO Capital & Investment Corp. which is 85 percent owned by Banco de Oro Unibank is the exclusive selling agent of the proposed issuance.
The company’s principal business is providing leasing and financing products to commercial clients which include direct lease, sale-leaseback, operating lease, commercial loan, and retail loan.