The Asian Development Bank (ADB) has signed a USD115-million (in Philippine peso equivalent) financing package with Asialink Finance Corporation to expand working capital and support small and medium-sized enterprises (SMEs) in the Philippines, particularly those led by women.
The financing package, led by ADB as the mandated lead arranger, bookrunner, and structuring bank, includes USD50-million from ADB, USD50-million from HSBC through the HSBC ASEAN Growth Fund, and USD15-million from Security Bank Corporation. HSBC participated as a joint mandated arranger and bookrunner, while Security Bank Capital Investment Corporation acted as the mandated lead arranger. Paulton & Company served as the exclusive financial advisor to Asialink for the transaction.
This initiative is expected to increase Asialink’s total loans to SMEs from PHP8.8-billion (approximately USD150-million) to PHP13-billion, with over half of the financing dedicated to women-owned or women-led SMEs. Asialink aims to double its female entrepreneur borrowers to at least 20,000 and introduce tailored loan products for 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 Suzanne Gaboury, ADB Director General for Private Sector Operations. “This project underscores ADB’s commitment to advancing financial inclusion and supporting the growth of SMEs, which are critical drivers of the Philippine economy.”
Addressing the Financing Gap for Women Entrepreneurs
The financing gap for SMEs in the Philippines is estimated at around PHP67-billion to PHP180-billion. Surveys reveal a significant disparity in financial inclusion: 50% of SMEs owned by men transact using bank accounts compared to only 24% of women. Furthermore, only 4% of women-led SMEs have received bank loan approvals, compared to 14% of male-owned SMEs.
“This partnership with ADB marks a transformative milestone in Asialink’s mission to empower SMEs across the Philippines, especially women-led businesses that remain underrepresented in the financial sector. Through this collaboration, we aim to expand nationwide, digitize and innovate loan processes, and ensure entrepreneurs have access to reliable financial solutions,” said Robert B. Jordan Jr., CEO of Asialink Finance Corporation.
Supporting SME Growth and Innovation
Established in 1997, Asialink has become a leading nonbank financial institution in the Philippines, with 247 branches nationwide. SMEs account for more than half of its portfolio, with secure lending provided through motor vehicles as collateral. Earlier this year, Asialink received a PHP4-billion strategic investment from Creador, a regional private equity investor supporting best-in-class financial services companies. The ADB financing package will further accelerate Asialink’s growth and innovation efforts.
ADB remains dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, continuing its mission to eradicate extreme poverty. Established in 1966, ADB is owned by 69 members, with 49 from the region.