IFC said in a statement that the investment will help AFC in expanding its financing for micro, small and medium enterprises (MSMEs), with at least 60 percent of loan proceeds earmarked for women-owned or led MSMEs (WMSMEs).

Aside from financing, IFC will also help the company implement an Environmental and Social Management System framework and responsible finance principles in line with international best practices.

“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs,

“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 Jane Yuan Xu, Acting Country Manager for IFC Philippines.

According to the statement, financial inclusion is at the core of AFC’s strategy as it is able to service underserved or unbanked MSMEs and individuals, most of whom don’t have the necessary collateral to access bank financing.

Robert B. Jordan Jr., Chief Executive Officer of Asialink Finance Corporation Group of Companies, said the investment will allow the firm to expand its lending to more MSMEs, particularly in underserved regions of the country and those that have historically been excluded from the formal financial sector.

“MSMEs are the backbone of the Philippine economy, but in many parts of the country it’s still a huge struggle to access the financing they need to grow and thrive. With this investment, we will help change that,” he added.

Although 75 percent of MSMEs are located outside Manila, Bangko Sentral ng Pilipinas (BSP), figures show that just 14 percent of the banking system’s loans serve companies outside the capital.

A 2021 BSP Financial Inclusion Survey also shows that the depth of financial penetration in the country is very limited, especially for women.

Only 20 percent of women own formal bank accounts compared with 26 percent of men.

In 2024, IFC invested in two fintech startups, Salmon and First Circle, both of which cater to consumers and MSMEs unable to access the formal credit market.

In July 2024, IFC invested $100 million in a social bond issued by City Savings Bank, with the proceeds being used for loans to women in low and lower middle-income groups, encouraging them to make investments in small businesses to supplement their family’s income in addition to payments for healthcare, education and housing.

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets.

The corporation works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.

Asialink is a premier financier dedicated to providing tailored financial solutions to small and medium-sized enterprises (SMEs) across the Philippines.