Singapore’s Osmanthus completes purchase of 15% stake in BDO unit

MANILA, Philippines — Singapore-based Osmanthus Investment Holdings Pte. Ltd. has completed the acquisition of a 15 percent interest in rural banking arm of BDO Unibank Inc.

In a disclosure to the Philippine Stock Exchange (PSE), BDO said it has completed a transaction with Osmanthus for the acquisition of a 15 percent stake in Davao-based One Network Bank (ONB) last Thursday.

Last October, BDO entered into an agreement with Osmanthus to take a minority stake in ONB.

Under the agreement, BDO would retain majority 85 percent ownership, providing continued financial and operational synergies to ONB.

The agreement also formalized the working relationship between ONB and Osmanthus, with the latter helping ONB since last year in developing the framework for its micro, small and medium enterprises (MSME) lending business, leading to the establishment of the initial pilot test sites in 2017.

ONB is the country’s largest rural bank in terms of assets, while Osmanthus is a unit of Singapore-based private equity firm Archipelago Capital Partners Pte. Ltd.

The partnership could further fortify ONB’s position as 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.

“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.” Pang said earlier.  

BDO and ONB is looking at opening between 50 and 70 branches this year to augment its distribution network of more than 1,300 operating branches and over 4,000 ATMs nationwide.