A DEAL involving the sale of certain assets and liabilities of midsized lender Export and Industry Bank (Exportbank) may be finalized as soon as this month or before the year ends, according to its president, Juan Victor Tanjuatco Jr.

The bank has not officially named Banco de Oro Unibank (BDO) of retail and property tycoon Henry Sy as the prospective buyer who will also assume all deposits totaling P19 billion held at Exportbank’s 50 branches nationwide.

Both parties, however, have disclosed they were in talks with each other, with BDO—the country’s largest bank—saying that negotiations centered on “potential areas of cooperation.”

Exportbank had total resources of P32.7 billion as of end-June. Its statement of condition as of September 30 last year showed total assets of P44 billion and net loans and receivables of P13.2 billion.

The bank in 2006 received a P9-billion financial assistance from the Philippine Deposit Insurance Corp., which remains unsettled.

“I am very optimistic [that Exportbank will be able to cut a deal with a buyer] before the year ends, maybe as early as this month,” Tanjuatco said on Friday in a phone interview.

He believes the prospective buyer will find Exportbank’s 50-branch network attractive as several branches have been refurbished, relocated and renovated, and are now generating more business and attracting more customers.

“There’s value in what we have done with our branches,” Tanjuatco said.

The bank’s board on October 29 authorized Tanjuatco and chairman Jaime Gonzalez to finalize and execute the sale of select assets and liabilities of the bank, subject to final regulatory approvals.

Asked to comment on the latest development, BDO president Nestor Tan told the BusinessMirror via text message on Friday that there was no “done deal” between BDO and Exportbank.

Tanjuatco declined to give further details about the planned asset sale. The bank has three subsidiaries—ValueGen Financial Insurance Co. Inc., EIB Savings Bank Inc. and EIB Securities Inc.

Exportbank has been under pressure to raise its Tier 1 or core capital and was previously looking to sell shares to an outsider.

The bank has decided to delay the submission of its 2008 annual financial report and quarterly financial statements to regulators until it has concluded negotiations with a prospective investor.

Trading in shares of Exportbank has been suspended since mid-May to prevent speculation-driven price movement.

The bank is 37-percent owned by the Hong Kong-based Lippo Group. Other major shareholders are AO Capital Partners Group with 22 percent, the group of Zest-O Corp. and Zest Air owner Ambassador Alfredo Yao with 20 percent, and Austria’s RZB Group with 9.5 percent.

Stocks held by the public account for 11.5 percent of the bank’s outstanding shares.

Exportbank acquired Urban Bank in 2001 shortly after the latter was closed by the central bank. In 2005 it sought fresh capital infusion from new and existing investors to meet stricter capital requirements set by regulators.