Manila, Philippines – The International Finance Corporation (IFC), a global development institution and member of the World Bank Group, has announced its investment of up to $130 million to Asialink Finance Corporation. The move aims to boost lending to micro, small and medium-sized enterprises (MSMEs) in the Philippines, advancing financial inclusion.
The investment, directed towards small business financing, is set to prioritise women-owned or led MSMEs with 60% of loan proceeds specifically designated for the sector.
With the funding, Asialink strengthens its strategy towards financial inclusion, serving MSMEs and individuals without access to bank financing.
Additionally, IFC will help Asialink implement a framework for environmental and social management system and finance principles aligned with international standards.
“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs,” Jane Yuan Xu, acting country manager for IFC Philippines, said.
“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,” Xu added.
“We are very grateful for IFC’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,” Robert B. Jordan Jr., chief executive officer of Asialink Finance Corporation Group of Companies, commented.
“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,” Jordan added.
