BDO Unibank, Inc. (BDO) has entered into an agreement with Osmanthus Investment Holdings Pte. Ltd. (Singapore), whereby Osmanthus will acquire a 15% stake in the Bank’s rural bank subsidiary, One Network Bank Inc. (ONB).
This transaction formalizes the working relationship between ONB and Osmanthus, with the latter helping ONB since last year in developing the framework for its MSME lending business, leading to the establishment of the initial pilot test sites before the end of 2017.The partnership with Osmanthus will further strengthen ONB’s strategic foothold in the microfinance business, and contribute to the government’s efforts at improving financial inclusion.
Osmanthus is a unit of Singapore-based private equity firm Archipelago Capital Partners Pte. Ltd., a Singapore based fund that invests in small to mid-market companies in South East Asia. Archipelago is managed by former McKinsey and banking professionals, led by its Chief Executive Officer Jovasky Pang, who have had extensive experience in microfinance in Asia. Archipelago CEO and co-founder Jovasky Pang was previously involved in growing BOC Fullerton Community Bank into the biggest village bank group in China, and also headed the SME and Commercial business of Bank Danamon Indonesia.
BDO will retain a majority 85% ownership, providing continued financial and operational synergies to ONB. BDO’s partnership with Osmanthus in ONB is expected to accelerate ONB’s ongoing thrust into the micro-SME (MSME) market and further extend coverage of the unbanked and underserved markets.
“We believe in the vast potential of the MSME market in the Philippines and are committed to help ONB achieve a leading position in serving these customers. We are also excited by the prospect of having a partner like BDO who shares our vision of financial inclusion.” says Jovasky Pang.
The transaction is subject to closing conditions and regulatory approvals.tworkbank.com.ph.