ASIALINK Finance Corp. (AFC), one of the leading and fastest-growing financing companies in the Philippines which started with one computer in June 1997, on Tuesday signed a $130-million investment agreement with the International Finance Corp. (IFC) to support women-led micro, small and medium enterprises particularly in the Visayas and Mindanao.
Paulton & Company served as Asialink’s financial advisor to the transaction. The investment will ramp up Asialink’s expansion which now has more than 500 branches all over the country as it aims to get a bigger chunk of the financing sector as more businesses acquire trucks and other equipment amid the sustained growth of the economy.
Asialink plans to open more branches by 2025 across Visayas and Mindanao. Building on its support for 20,214 MSMEs last year, with 12,048 specifically provided to women, its partnership with IFC will boost its growth and outreach, it said.
The partnership will empower AFC and units Global Dominion Financing Inc. (GDFI) and South Asialink Finance Corp. (SAFC) to expand their lending capacity for MSMEs, allocating at least 60 percent of the funds to support women-owned or women-led businesses. For 27 years, Asialink has been driving economic growth by supporting MSMEs as it recognizes their role in reducing poverty and creating more job opportunities for Filipinos.
IFC’s investment will help AFC in expanding its financing for MSMEs, with at least 60 percent of loan proceeds earmarked for women-owned or led MSMEs. Aside from financing, IFC will also help the company implement an environmental and social management system framework and responsible finance principles in line with international best practices.
According to the Asian Development Bank (ADB), many Filipino female entrepreneurs and business owners face challenges in starting and growing businesses due to difficulties securing capital. The MSME sector has been a crucial support system for these women, with a significant portion of enterprises being women-led, highlighting the sector’s resilience and contribution to the economy.
“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs,” said Jane Yuan Xu, acting country manager for IFC Philippines.
“Because ultimately, we are not just funding companies, we are creating jobs at the grassroots level. Every loan to an MSME can mean five, ten or twenty new jobs in local communities. And that’s what drives an economy forward,” Xu said.
“We are very grateful for IFC’s support, which will allow us to expand our lending to more MSMEs, particularly in underserved regions of the country and those that have historically been excluded from the formal financial sector,” said Robert Jordan Jr., chief executive of Asialink Group of Companies.
“MSMEs are the backbone of the Philippine economy, but in many parts of the country it’s still a huge struggle to access the financing they need to grow and thrive. With this investment, we will help change that,” he said.
