The Asian Development Bank (ADB), HSBC and Security Bank Capital Investment Corp. lent early this month to Asialink Finance Corporation $115 million to fund its lending business to small and medium businesses, especially those led by women.  

The package consisted of $50 million from ADB, $50 million from HSBC through the HSBC ASEAN Growth Fund, and $15 million from the Security Bank unit. Paulton & Company served as financial advisor to Asialink for this transaction.  

The project is expected to increase Asialink’s total loans to SMEs from P8.8 billion (around $150 million) to around P13 billion, with more than half of the financing dedicated to SMEs that are women-led. This would nearly double Asialink’s female entrepreneur borrowers to at least 20,000. 

 “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 director general for Private Sector Operations Suzanne Gaboury. 

The financing gap for SMEs in the Philippines is estimated at around P67 billion to P180 billion. Recent surveys have shown that half of SMEs owned by men transact using bank accounts compared to only 24 percent of women. Only 14 percent of SMEs run by men have received approval for bank loans, which drops precipitously for women to only 4 percent.