The Asian Development Bank (ADB) has signed a Risk Participation Agreement with Security Bank Corporation to help expand supply chain financing for small and medium-sized enterprises (SMEs) in the Philippines.
The deal is the first agreement of its kind between ADB and a Philippine bank. Under the partnership, ADB will share credit risks with Security Bank through its Trade and Supply Chain Finance Program, allowing the bank to provide more financing support to local SME suppliers.
The initiative aims to help SMEs get paid faster, improve cash flow, and strengthen their operations within local and regional supply chains.
ADB country director for the Philippines Andrew Jeffries said the partnership will help address financing gaps faced by SMEs and serve as a model that can be expanded across the local market to support business growth and job creation.
