By Anna Gabriela A. Mogato
BDO Unibank, Inc. (BDO) is entering a partnership with Singaporean firm Osmanthus Investment Holdings Pte. Ltd., to develop its micro, small, and medium enterprise (MSME) lending services in the Philippines.
In a disclosure to the Stock Market on Monday, Osmanthus will acquire 15% of BDO subsidiary One Network Bank, Inc. (ONB) to improve its microfinancing business.
Osmanthus is a unit of Archipelago Capital Partners Pte. Ltd., which invests in small to mid-market companies in Southeast Asia.
Under the partnership, BDO will still provide ONB with financial and operations synergies.
“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,” Archipelago CEO and co-founder Jovasky Pang in the disclosure said.
“We are also excited by the prospect of having a partner like BDO who shares our vision of financial inclusion,” he added.
BDO said that the the transaction is still subject to closing conditions and regulatory approvals.