The Thai lender, which bought 10% of Bank Maspion Indonesia in 2017 for $20 million, said in a filing that it would invest up to $220 million to reach a shareholding of at least 67.5%.

Kbank, Thailand's second-largest lender by assets, expects the transaction to be finalised by the end of the year.

The announcement comes as Thai lenders invest outside their home turf, seeking more growth in Southeast Asia. Last year, Kbank opened its first branch in Vietnam.

In 2019, rival lender, Bangkok Bank Pcl, bought PT Bank Permata for about $2.7 billion.

(Reporting by Chayut Setboonsarng; Editing by Ed Davies)