The Asian Development Bank (ADB) signed a $115-million financing package with Asialink Finance Corp. to expand its working capital and support small and medium-sized enterprises (SMEs) in the Philippines, especially those led by women.
The financing was led by ADB, which served as the overall mandated lead arranger, bookrunner and structuring bank.
HSBC participated as joint mandated arranger and bookrunner, while Security Bank Capital Investment Corp. acted as mandated lead arranger. The financing package consists of a $50-million loan from ADB, $50 million from HSBC through the HSBC ASEAN Growth Fund and $15 million from Security Bank Corp. Paulton & Company also served as an exclusive financial advisor to Asialink for the transaction.
The project is expected to increase Asialink’s total loans to SMEs from P8.8 billion (around $150 million) to P13 billion, with more than half of the financing dedicated to SMEs that are women-owned or led. This will nearly double Asialink’s female entrepreneur borrowers to at least 20,000 and introduce tailored offerings to women business owners.
“Nonbank financial institutions play a key role in providing services to unbanked SMEs. This partnership between ADB and Asialink will enhance SMEs’ access to finance, especially for women entrepreneurs who face greater challenges in obtaining capital,” said ADB director general for private sector operations Suzanne Gaboury.
“This project showcases ADB’s strong commitment to advancing financial inclusion and growth of SMEs, which are key drivers of the Philippine economy,” said Gaboury.
The financing gap for SMEs in the Philippines is estimated at around P67 billion to P180 billion. Recent surveys showed that half of SMEs owned by men transact using bank accounts compared to only 24 percent of women.
Only 14 percent of SMEs run by men received approval for bank loans, which drops precipitously for women to only 4 percent.
“This partnership with ADB marks a transformative milestone in Asialink’s mission to empower small and medium-sized enterprises across the Philippines, especially women-led businesses that remain underrepresented in the financial sector. We are optimistic that through this collaboration, we can continue to expand our presence nationwide, introduce personalized loan products, digitize and innovate our loan processes, and ultimately ensure that entrepreneurs have access to reliable financial solutions,” said Asialink Finance Corp. chief executive Robert Jordan Jr.
Asialink was established in 1997 and has become one of the leading nonbank financial institutions in the Philippines. It has 247 branches nationwide, providing secure lending to SMEs using motor vehicles as collateral.
