The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of up to $130 million in Asialink Finance Corp, a prominent lender to small and medium enterprises (SMEs) in the Philippines.
The financing package, aimed at bolstering Asialink’s lending capabilities to micro, small, and medium enterprises (MSMEs), includes a four-year senior loan of up to $100 million directly from IFC and an additional $30 million sourced from parallel lenders.
This strategic move is intended to enhance Asialink’s support to a sector that is pivotal to the Philippine economy.
MSMEs represent over 99% of all business establishments in the country and employ 63% of the workforce, contributing 40% to the national GDP.
The focus on including women-led MSMEs (WMSMEs) in this financing initiative aligns with broader efforts to address gender disparities in economic opportunities.
Asialink Finance, founded in June 1997 and headquartered in Manila, operates through a network of over 360 branches nationwide.
The company employs more than 700 staff and leverages thousands of independent loan consultants to meet diverse customer needs.
Asialink is known for offering accessible, fast, and competitively priced loan products, which have significantly eased the credit accessibility for local businesses and individual borrowers.
The firm is predominantly owned by the Lugtu family, which holds a 70% stake, while the remaining equity is divided between Creador, a Malaysia-based private equity firm with an 18% stake following a $71 million investment earlier in February, and CEO and co-founder Robert Jordan Jr., who owns 12%.
Additionally, Asialink’s corporate structure includes full ownership of Global Dominion Financing Inc (GDFI) and a majority stake in South Asialink Finance Corporation (SAFC), following a strategic consolidation enhanced by Creador’s investment.
IFC also plans to support Asialink with a currency swap arrangement to manage currency and interest rate risks associated with the investment. This financial maneuver is expected to stabilize Asialink’s capital flows and ensure sustainable expansion in its operations.
The expected outcomes of IFC’s investment include a substantial increase in Asialink’s loan portfolio directed towards MSMEs and WMSMEs.
This is anticipated not only to bridge the financing gap faced by these entities but also to spur greater competitiveness within the MSME financing sector.