American investment firm TPG Growth has agreed to buy a 40% stake in One Network Bank (ONB), the rural bank subsidiary of Philippines’ BDO Unibank.
BDO acquired ONB in July 2015. Based in Davao City, ONB operates with more than 100 branches and offices in Philippines.
The lender will continue to hold a stake of about 60% in the rural unit following the takeover, which is subject to regulatory approval.
BDO president and CEO Nestor Tan said: "Through this partnership, ONB will benefit from TPG’s global experience in financial services, especially in developing markets."
The move aligns with efforts by Philippines’ central bank to improve financial inclusion in the country, BDO said.
TPG Southeast Asia head Ganen Sarvananthan added: "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."
TPG Growth, the middle market platform of San Francisco-based private investment firm TPG, oversees over $7bn in assets across multiple sectors.