The Asian Development Bank (ADB), HSBC, and Security Bank Capital Investment Corporation have joined forces to support Asialink Finance Corporation's mission of expanding lending to small and medium-sized enterprises (SMEs), particularly women-led businesses, with a significant $115 million financing package.
Breaking down the funding: ADB contributes $50 million, HSBC adds another $50 million through the HSBC ASEAN Growth Fund, and Security Bank pitches in $15 million. The financial advisory for this transaction was provided by Paulton & Company.
This substantial investment aims to elevate Asialink's SME loans from P8.8 billion to P13 billion, prioritizing women-led enterprises. The expected outcome is a remarkable increase in the number of female entrepreneurs receiving financial backing, potentially reaching at least 20,000 women.
"Nonbank financial institutions are crucial in offering services to unbanked SMEs. The collaboration between ADB and Asialink is set to enhance financial access for SMEs, particularly for women entrepreneurs who face heightened challenges in securing capital," stated Suzanne Gaboury, ADB's Director General for Private Sector Operations.
The Philippines’ SME sector is grappling with a financing gap ranging from P67 billion to P180 billion, with women entrepreneurs being especially underserved. Data reveals a stark contrast in financial access: while 50% of male-owned SMEs utilize bank accounts, only 24% of women-led businesses do, and loan approval rates for women are significantly lower.
Robert B. Jordan Jr., CEO of Asialink, hailed the deal as a "transformative milestone" in their mission to empower SMEs, particularly women-led businesses. He expressed optimism that this collaboration would enable Asialink to expand its nationwide presence, introduce personalized loan products, and enhance digital and innovative loan processes, ensuring that entrepreneurs have access to reliable financial solutions.
Founded in 1997, Asialink operates 247 branches across the Philippines, offering secured loans to SMEs using motor vehicles as collateral.
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