Asialink Finance Corp. has issued P2-billion fixed-rate three-year corporate notes, its first capital market foray as it diversifies its funding sources to raise more funds for relending to small and medium companies that have little to no access to bank loans.
"These companies need funds to grow. They are the backbone of our economy, and their growth is everybody's growth. Asialink is their link, and we will continue to raise the funds they need. That is our mission," Asialink CEO Roberto Jordan said.
SB Capital Investment Corp. and RCBC Capital, acting as joint lead arranger and manager, committed P1 billion each for offering to their clients.
Asialinks' notes facility agreement was signed with representatives from the participating noteholder banks which includes RCBC, Security Bank, EastWest Bank, PBCOM and UnionBank.
"This demonstrates the industry-wide recognition and support for Asialink's growth initiatives," said Jordan. Asialink raises funds for relending largely from banks.
Jordan said the three-year notes "offer investors a unique opportunity with fixed interest rates, providing stability and predictability in their investment returns."
MSMEs as audience
Asialink serves micro, small and medium-scale companies that banks, partly because of existing tight lending rules, cannot serve. These companies make up 99 percent of total businesses in the Philippines.
Asialink has more than 45,000 of these borrowers but Jordan says there are still so many that need to have access to funds and he wants Asialink to raise even more funds to cover these unbanked companies.
Earlier this year, Asialink raised P1 billion from Yuanta Saving Bank and Small Business Corporation also for relending.
Asialink lends about P1.3 billion per month to its clients and has a repayment rate that is much better than that of banks.
In 2022, the company reported a 44 percent growth in total revenues of P3.096 billion from P2.152 billion year-on-year. Its asset value went up by 39 percent, with a total asset of P11.369 billion.
Asialink was formed in June 1997, with a capitalization of just P3 million. Today, it has over 1000 employees, thousands of independent loan consultants, and more than 116 branches nationwide.