MANILA - BDO Unibank on Friday said it has agreed 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 Philippines' largest bank said it is restructuring its leasing business in light of new accounting regulations on lease transactions, which have made them less attractive to corporate borrowers.

"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," the company said.

BDO Finance will also assume current lease transactions booked in BDOLF to provide continuity to existing clients, the bank added.

“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.

The sale is subject to approval by regulators.