Asialink secures $130-M loan from IFC to boost lending to women-led MSMEs 

Lending firm Asialink Finance Corp. (AFC) has secured a $130-million loan package from World Bank Group member International Finance Corp. (IFC) to expand its financing for micro, small and medium enterprises (MSMEs), especially those led or owned by women.

Under the partnership, AFC Group, which includes Global Dominion Financing Inc. (GDFI) and South Asialink Finance Corp. (SAFC), will earmark at least 60% of the IFC’s loan proceeds to women-owned MSMEs.

The $130-million loan package was inked by AFC Group chair Ruben Lugtu II, AFC CEO Robert Jordan Jr., IFC-Asia Pacific Financial Institutions Group (FIG) regional industry director Allen Formelu, IFC-FIG East Asia and Pacific regional manager Arnaud Dupoizat, and IFC-FIG Philippines senior investment officer Aileen Theresa Ruiz-Zarate.

“Our partnership with IFC marks a significant milestone in our mission to empower MSMEs and drive inclusive economic growth,” said Jordan.

“This collaboration will not only expand our lending reach but also enable us to bring our financial solutions to more entrepreneurs and local businesses across the country. By addressing the financing gap, particularly for women-led MSMEs, we are confident that this partnership will create lasting economic impact, foster gender equity in entrepreneurship, and further contribute to the growth and resilience of the Philippine economy,” he added.

Data from the Asian Development Bank (ADB) showed that the financing gap for small businesses in the Philippines is estimated at around P67 billion to P180 billion. 

The ADB has said that the financing gap for women-led MSMEs are larger than compared to those owned by men as 14% of small enterprises run by males have received approval for bank loans, while the figure is only at 4% for female-owned ventures.

“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs," said Jane Yuan Xu, acting country manager for IFC Philippines. 

"Because ultimately, we are not just funding companies, we are creating jobs at the grassroots level. Every loan to an MSME can mean five, ten or twenty new jobs in local communities. And that’s what drives an economy forward,” said Xu.

With IFC’s financing support, AFC Group will further boost its support for the growth of the MSMEs sector building on its support for 20,214 MSMEs last year, with 12,048 specifically provided to women-led enterprises.

“[W]e recognize that many small businesses, particularly in underserved regions, still face significant barriers in accessing reliable and quality financing,” said Jordan.

“With IFC’s support, we are poised to break down these barriers and expand our reach, ensuring that more entrepreneurs across the country gain the financial tools they need to thrive and contribute to the nation’s economic progress,” he said. — BM, GMA Integrated News