BDO takes in TPG Growth to expand rural bank unit

TPG Growth is acquiring a 40-percent stake in One Network Bank (ONB) from BDO Unibank Inc.

The Davao-based ONB is the rural bank subsidiary of BDO, with more than 100 branches and offices.

In a statement on Monday, BDO said it will retain approximately 60 percent ownership in ONB.

BDO President and CEO Nestor V. Tan noted the transaction will help speed up the expansion of ONB and the development of new products for the underserved market.

“Through this partnership, ONB will benefit from TPG’s global experience in financial services, especially in developing markets,” he said.

The new phase of ONB’s growth is in line with efforts by the Bangko Sentral ng Pilipinas to improve financial inclusion in the country, the bank said.

“TPG has worked with many highly impactful financial services businesses across Asia. 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.

The transaction is subject to closing conditions and regulatory approval.

TPG Growth is the middle market and growth equity investment platform of TPG, the global private investment firm with over $7 billion of assets under management. – VDS, GMA News