MANILA, Philippines – The International Finance Corporation (IFC) is investing $130 million in Asialink Finance Corporation (AFC) to boost lending for women-led or women-owned micro, small and medium enterprises (MSMEs) in the Philippines.
The partnership will allow AFC and its units to expand their lending capacity for MSMEs. At least 60% of the funds will be allocated to support women-owned or women-led businesses.
The IFC will also assist AFC in the implementation of an environmental and social management system.
MSMEs account for over 99% of registered in the Philippines, but the sector struggles to access financing. According to the Bangko Sentral ng Pilipinas (BSP), 75% of MSMEs operate outside Metro Manila. However, only 14% of banking loans in the country serve companies in these regons.
Only 14% of banking loans serve regions outside Metro Manila, despite 75% of MSMEs operating outside the metropolis.
“The fact that only 20% of Filipino women own formal bank accounts tells us there’s enormous potential in the economy. Asialink already demonstrates leadership here, with women-owned businesses comprising half of their SME portfolio,” said Allen Forlemu, IFC’s regional industry director for the financial institutions.
Asialink Group of Companies’ CEO Robert Jordan Jr. said the partnership with IFC will allow the firm to expand its financial solutions to more local businesses, especially in Visayas and Mindanao.
The IFC is a member of the World Bank group and the largest global development institution that focuses on the private sector in emerging markets.
IPO in the works
Jordan also confirmed Asialink’s plans to conduct an initial public offering (IPO) by 2028. However, he noted that the company may push the IPO earlier depending on the market conditions and projected growth.
“We might need to go to the capital markets for more income,” he said.
Jordan said Asialink may need to raise up to P6 billion to meet the group’s requirements.
For 2025, Jordan said the AFC aims to further penetrate the untapped market in Visayas and Mindanao and entice more prospective borrowers. He offered truck loans as an example, where AFC’s receivables for this type of loan is at about P7 billion.
“And this product is important, especially in big islands like Mindanao because it is used really for transporting the goods, agricultural goods and other logistical supplies,” he explained.
AFC aims to reach a bottomline of P2.2 billion to P2.3 billion this year amid efforts to grow its loan portfolio. – Rappler.com