ADB Partners with Asialink Finance to Support Women-Owned SMEs in Philippines with $115M Financing

New Partnership Aims to Boost Access to Finance for Women Entrepreneurs and Strengthen the Philippine SME Sector.

.The Asian Development Bank (ADB) has signed a landmark $115 million financing package with Asialink Finance Corporation to expand working capital and strengthen the financial services available to small and medium-sized enterprises (SMEs) in the Philippines. This new partnership will especially benefit women-owned SMEs, which have faced significant barriers in accessing capital.

The financing agreement, signed by ADB Director General for Private Sector Operations Suzanne Gaboury and Asialink Finance Corporation CEO Robert B. Jordan Jr. in Manila, aims to enhance Asialink's ability to extend loans to SMEs across the country. The package consists of a $50 million loan from ADB, $50 million from HSBC through the HSBC ASEAN Growth Fund, and $15 million from Security Bank Corporation.

Boosting Access to Finance for Women Entrepreneurs

Asialink's total loan portfolio is expected to grow from Php8.8 billion (around $150 million) to approximately Php13 billion, with over half of the financing dedicated specifically to SMEs owned by women. This will nearly double the number of women entrepreneurs receiving financial support from Asialink, increasing their number to at least 20,000. The project will also introduce tailored financial products for women business owners, addressing the unique challenges they face in accessing credit.

“Nonbank financial institutions play a key role in providing services to unbanked SMEs. This partnership between ADB and Asialink will enhance SMEs’ access to finance, especially for women entrepreneurs who face greater challenges in obtaining capital,” said ADB Vice-President for Market Solutions Bhargav Dasgupta. “This project showcases ADB’s strong commitment to advancing financial inclusion and supporting the growth of SMEs, which are key drivers of the Philippine economy.”

Addressing the Financing Gap for SMEs

The financing gap for SMEs in the Philippines is estimated to be between Php67 billion and Php180 billion. Recent surveys have shown stark disparities in access to finance between men and women-owned businesses. Approximately 50% of male-owned SMEs use bank accounts for transactions, compared to just 24% of women-owned SMEs. Furthermore, only 14% of male-owned SMEs have received approval for bank loans, a number that drops significantly to just 4% for women-owned businesses.

This financing package aims to bridge this gap and increase financial access for women-led SMEs, helping to address gender inequality in the entrepreneurial sector.

Transformative Milestone for Asialink and SMEs in the Philippines

“This partnership with ADB marks a transformative milestone in Asialink’s mission to empower SMEs across the Philippines, especially women-owned businesses that remain underrepresented in the financial sector,” said Robert B. Jordan Jr., CEO of Asialink. “We are optimistic that with this collaboration, we can continue to expand our presence nationwide, introduce personalized loan products, digitize and innovate our loan processes, and ultimately ensure that entrepreneurs have access to reliable financial solutions.”

Asialink’s Role in the Philippine Economy

Founded in 1997, Asialink Finance Corporation has become one of the leading nonbank financial institutions in the Philippines. With 247 branches nationwide, Asialink provides secure lending to SMEs, using motor vehicles as collateral. SMEs constitute more than half of Asialink's portfolio.

Earlier this year, Asialink received a Php4 billion strategic investment from Creador V L.P., an ADB-investee fund managed by Creador, a regional private equity investor. This investment supports Asialink’s ongoing expansion and capacity-building efforts, allowing the institution to offer enhanced financial products and services to a wider range of businesses, including women entrepreneurs.

Looking Ahead: A Commitment to Financial Inclusion

This financing agreement represents a major step toward improving financial inclusion and empowering women entrepreneurs in the Philippines. By focusing on the unique challenges faced by women-led businesses, ADB and Asialink are working together to create a more inclusive and sustainable economy, with a particular emphasis on the growth of SMEs, which are critical to the country’s economic prosperity.

With this partnership, Asialink will be better positioned to drive economic development, create jobs, and foster long-term growth, while also supporting the financial independence and success of women entrepreneurs in the Philippines.