IFC invests $130M in Asialink
Asialink Finance Corp., a lender to micro, small and medium enterprises (MSME), has secured a $130-million investment from the International Finance Corp. (IFC)—part of the World Bank Group—to help expand its financing for small businesses, especially those owned by women.
IFC said at least 60 percent of its investments in Asialink would go to lending for women-owned business, noting that many Filipina entrepreneurs face challenges in starting and growing businesses due to difficulties securing capital.
“By addressing the financing gap, particularly for women-led MSMEs, we are confident that this partnership will create lasting economic impact,” said Robert Jordan Jr., founder and CEO of Asialink Finance Group of Companies.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed total loans of the Philippine banking sector to MSMEs amounted to P500.81 billion in the third quarter of 2024, up by 3 percent on a sequential basis.
But that amount of loans only accounted for 4.6 percent of the banking industry’s P11-trillion lending portfolio as of end-September last year, well below the prescribed credit quota of 10 percent for MSMEs.
As it is, many banks have not been compliant with the credit quota and just opted to pay the penalties instead of assuming the risks that typically come with lending to MSMEs, which are deemed the backbone of the Philippine economy.
This is where companies like Asialink come in.
The firm plans to open more branches across Visayas and Mindanao regions this year in hopes of building on its support to 20,214 MSMEs as of 2024, of which 12,048 were owned by women.
Moving forward, Asialink’s Jordan said the company would continue raising additional capital so it can hand out more loans to MSMEs, adding that an initial public offering (IPO) not later than 2028 is still on the table.
“It depends on the market conditions, we might do an earlier IPO if the market is right,” he said. “If our growth is sustained this 2025 and 2026, then we might need to go to the capital markets for more equity.”
