The Asian Development Bank, HSBC, and Security Bank Capital Investment Corp. have joined forces to lend USD115 million to Asialink Finance Corp. to fuel the growth of small and medium-sized enterprises in the Philippines, with a special focus on women-led businesses.
The financing package includes USD50 million from ADB, USD50 million from HSBC through the HSBC ASEAN Growth Fund, and USD15 million from Security Bank. Paulton & Co. acted as the financial advisor to Asialink in this transaction.
The funds will enable Asialink to significantly expand its lending capacity, raising its total loan portfolio to P13 billion from P8.8 billion. More than half of this financing will be directed toward women-led SMEs, which have traditionally faced more challenges in accessing capital.
The initiative is expected to increase the number of women entrepreneurs benefiting from Asialink’s loans to at least 20,000, nearly doubling its current base of female borrowers.
“Nonbank financial institutions play a crucial role in providing financial services to underserved SMEs. This partnership between ADB and Asialink will help enhance access to finance, particularly for women entrepreneurs who often face greater barriers to capital,” said Suzanne Gaboury, ADB’s Director General for Private Sector Operations.
The financing gap for SMEs in the Philippines is substantial, ranging from Php 67 billion to Php 180 billion. Data shows that only 24% of women-led SMEs have access to bank accounts, compared to 50 percent of male-owned businesses. Furthermore, only 4 percent of women-led SMEs have received approval for bank loans, a stark contrast to 14 percent for male-led firms.
“This partnership with ADB marks a transformative step in Asialink’s mission to empower SMEs across the country, particularly women-led businesses that remain underrepresented in the financial sector,” said Robert B. Jordan Jr., CEO of Asialink. “We are committed to expanding our reach, offering personalized loan products, and embracing digital innovation to better serve entrepreneurs nationwide.”
Founded in 1997, Asialink has become one of the leading non-bank financial institutions in the Philippines, offering secured lending to SMEs through its network of 247 branches across the country. Earlier this year, the company also secured a P4 billion strategic investment from Creador, a prominent regional private equity firm.
