MANILA - BDO Unibank on Monday said it has entered into an agreement to sell 15 percent stake of its rural bank One Network Bank Inc (ONB) to Singapore's Osmanthus Investment Holdings.

BDO will retain a majority of 85 percent ownership in ONB, the company told the stock exchange.

This transaction will further strengthen ONB's foothold in microfinance business and will contribute to the government's financial inclusion efforts, it said.

"BDO’s partnership with Osmanthus in ONB is expected to accelerate ONB’s ongoing thrust into the micro-SME (MSME) market and further extend coverage of the unbanked and underserved markets," BDO said.

The transaction is subject to regulatory approvals, BDO said.

Osmanthus is a unit of Archipelago Capital Partners, a Singapore-based private equity investment firm focused on high potential small and middle market businesses in the consumer and financial services, among others, BDO said.

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