China’s state-owned Bank of Communications (BoCom) has acquired 80% stake in midsize Brazilian lender Banco BBM for $173m.

BoCom in its filing with Hong Kong stock exchange said that the acquisition would allow it to better serve Chinese businesses looking to invest abroad.

BoCom added that it will finance the deal using its own internal funds.

Founded in 1858, Banco BBM operates in Rio de Janeiro, São Paulo and Salvador. At the end of 2014, the lender had total assets of $1.02bn.

The deal, which is BoCom’s first overseas acquisition, is subject to regulatory approval.