MANILA, Philippines — BDO Unibank Inc. has taken in Osmanthus Investment Holdings Pte. Ltd. of Singapore as a new strategic partner to strengthen its foothold in the microfinance business and contribute to the government’s efforts to improve financial inclusion.
The country’s largest lender owned by retail and banking magnate Henry Sy has entered into an agreement with Osmanthus to take a 15 percent stake in wholly owned subsidiary, Davao-based One Network Bank Inc. (ONB).
Under the agreement, BDO would retain majority 85 percent ownership, providing continued financial and operational synergies to ONB.
The agreement also formalizes 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.