MANILA, Philippines – BDO Unibank, the country’s largest bank, agreed to sell 40% of its rural bank subsidiary, One Network Bank (ONB), to a US-based global investment firm.
In a disclosure to the stock exchange on Friday, June 17, BDO said that it will sell 40% of its stake in ONB to TPG Growth, the middle market platform of San Francisco-based private investment firm TPG.
TPG Growth manages more than $7 billion in assets across a variety of sectors including media and technology.
BDO acquired ONB in July 2015 and will retain 60% of it following the transaction. ONB is the largest rural bank in the Philippines with more than 100 branches and offices.
The transaction is still subject to closing conditions and regulatory approval.
“Through this partnership, ONB will benefit from TPG’s global experience in financial services, especially in developing markets,” said Nestor Tan, president and CEO of BDO.
TPG has a track record of growing financial institutions, particularly those focused on microloans, having partnered with more than 15 financial services companies across Asia.
In 2008, TPG worked with Bank Tabungan Pensiunan Nasional (BTPN) of Indonesia to open more than 550 new branches and create a microloan business that grew the bank’s customer base to more than two million group lending program clients and 250,000 micro, small, and medium enterprises (MSMEs).
TPG’s other financial sector investments include Indonesian financial institution BFI; Janalakshmi, India’s largest microfinance institution; the Shenzhen Development Bank in China; and the Union Bank of Colombo in Sri Lanka.
“Our insight in the sector has come from years of identifying and developing the full potential of strong businesses,” said Ganen Sarvananthan, head of TPG Southeast Asia.
“Together, BDO and ONB have built an impressive foundation. We look forward to bringing all that we’ve learned into a collaborative partnership and expanding the impact they’ve already created,” he added.
Outside of financial institutions, TPG Growth was also an early backer of sharing platforms Uber and Airbnb. – Rappler.com
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