MANILA, Philippines — BDO Leasing and Finance Inc., the leasing arm of BDO Unibank, has received the go signal from the Securities and Exchange Commission (SEC) to issue P15 billion worth of commercial papers.
Proceeds will be used for refinancing its obligations and for relending.
BDO Leasing is 85.09 percent-owned by BDO Unibank.
At present, the company’s principal business is providing leasing and financing products to individual and corporate clients.
Services include extending credit facilities for commercial, industrial and agricultural ventures or enterprises and providing loans without collateral or on the security of a mortgage of real properties, pledge, chattel mortgage of equipment, machinery, merchandise, shares of stock, securities and other personal properties.
It is chaired by Teresita Sy-Coson, the eldest daughter of the late Henry Sy.
Philippine Rating Services Corp., a local debt watcher, has given BDO Leasing an issuer credit rating of PRS Aa minus which indicates its strong ability to meet all its financial obligations.
In assigning the rating, PhilRatings said BDO Leasing has strong brand recognition due to its close strategic relationship with its parent bank.
However, it also noted a possible slowdown in its asset expansion, coupled with the increase in its past due accounts and rising interest rates which may dampen the demand for leasing and financing.
PhilRatings also assigned a stable outlook, which means the assigned issuer credit rating is likely to remain unchanged in the next 12 months.
The company’s leasing and financing portfolio stood at P34.3 billion as of the end of 2017, up 9.4 percent year-on-year.
Going forward, PhilRa-tings expects BDO to continue expanding its business revenues.