Tovic Salvador

World Bank unit invests $130-M in Asialink to boost MSME lending in PH

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA — The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $130 million investment in Asialink Finance Corporation (AFC) to expand financial access for micro, small, and medium enterprises (MSMEs) in the Philippines.IFC said the funding will prioritize underserved sectors, with at least 60 percent earmarked for women-owned or led MSMEs. Alongside financial support, IFC will assist AFC in implementing an Environmental and Social Management System and adopting responsible finance principles aligned with global best practices.“We hope to showcase the viability of lending to MSMEs and inspire others to develop similar solutions,” said Jane Yuan Xu, Acting Country Manager for IFC Philippines. “Every loan to an MSME can mean five, ten or twenty new jobs in local communities. And that’s what drives an economy forward,” she added.MSMEs account for over 99 percent of registered businesses in the Philippines but struggle to access financing. IF noted that while 75 percent of MSMEs operate outside Metro Manila, only 14 percent of banking loans serve these regions, according to Bangko Sentral ng Pilipinas (BSP). Women entrepreneurs face even greater challenges, with just 20 percent owning formal bank accounts compared to 26 percent of men.Robert Jordan Jr., CEO of AFC, expressed said the funding will help them support more MSMEs in the Philippines. &quot;We are very grateful for IFC&#x27;s support, which will allow us to expand our lending to more MSMEs, particularly in underserved regions of the country and those that have historically been excluded from the formal financial sector,&quot; said Jordan.This initiative builds on IFC’s previous investments in the Philippines, including $100 million in City Savings Bank’s social bond in 2024 and funding for fintech startups Salmon and First Circle.

IFC said the funding will prioritize underserved sectors, with at least 60 percent earmarked for women-owned or led MSMEs.

IFC said the funding will prioritize underserved sectors, with at least 60 percent earmarked for women-owned or led MSMEs.