Tag: Asian Development Bank

Philippines – The Asian Development Bank (ADB) has a $100m financing deal to support holding company Ayala Corporation’s initiatives to charge the electric vehicle (EV) ecosystem in the Philippines.

The funding will be allocated to the procurement and installation of EV charging stations in the country. A portion of the funding will also be used to acquire EVs from leading manufacturers for commercial distribution. 

Aiming to bolster the development of a charging station network in the country through the financing deal, Ayala intends to address the limited EV charging infrastructure and other barriers to boost its adoption.

Besides ADB’s financing, the deal includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a trust fund managed by the bank which supports climate solution projects in the private sector.

Ayala’s mobility provider, ACMobility, has been leading initiatives to develop EV charging stations in the Philippines since 2023. It recently acquired the charging network Evro, which operates under Globe’s tech innovation arm 917Ventures.

“This project is a significant step towards a sustainable and low-carbon future for the Philippines. By fostering the development of a robust electric mobility ecosystem, we are not only addressing critical environmental challenges such as air pollution, but also driving economic growth through the creation of green jobs, enhancing energy security, and promoting inclusive and resilient urban development,” Pavit Ramachandran, ADB country director for the Philippines, said.

“This innovative blended financing comes at an opportune time as Ayala, through ACMobility, continues to ramp up its electric mobility investments. As we help build a comprehensive EV ecosystem for the Philippines, we wish to thank like-minded institutional partners like ADB for helping us expand our electric mobility initiatives, accelerate our contribution to the Philippines’ climate goals, and reaffirm our purpose of building businesses that enable people to thrive,” ACMobility’s president and CEO Jaime Alfonso Zobel de Ayala, commented.

Manila, Philippines – The Asian Development Bank (ADB) and the Mastercard Impact Fund, administered by the Mastercard Center for Inclusive Growth, announced a landmark partnership to promote financial inclusion and access for MSMEs across the Asia-Pacific region. 

The collaboration will leverage a US$5m grant from the Mastercard Impact Fund to support up to US$1b of ADB financing to financial institutions for lending toward micro, small, and medium enterprises (MSMEs). 

The Mastercard Impact Fund aims to accelerate ADB’s efforts to deliver financing to MSMEs across Asia-Pacific, including the Philippines, by providing a US$5m grant in the form of risk-reducing capital, incentives and capacity building support to financial institutions. The mitigation of credit risk and technical assistance support is expected to catalyse lending by financial institutions, toward unserved or underserved MSMEs. 

In the Philippines, MSMEs account for 99% of all business establishments and employ roughly 63% of the country’s workforce. However, despite being considered the economic backbone of the country, many MSMEs remain financially excluded. This sector is among the underserved segments by financial institutions, underpinning the need for increased MSME support. 

At least 50% of ADB’s total financing will go towards women led or owned MSMEs and climate finance among small businesses deployed over a period of four years. The initial target markets include India, Indonesia, Malaysia, Philippines, Thailand, Vietnam, and Georgia. 

This partnership between the Mastercard Impact Fund and ADB marks a significant step towards addressing critical MSME financing gaps in the region. By leveraging their combined expertise and resources, both organizations are committed to fostering sustainable growth and inclusive prosperity for MSMEs throughout Asia and the Pacific.

Bhargav Dasgupta, vice president of market solutions at ADB, said, “MSMEs are the backbone of economies across Asia and the Pacific, yet many struggle to obtain adequate finance. By combining the resources and expertise of ADB and Mastercard, this facility will unlock the potential of MSMEs, particularly those run by women or supporting climate finance, empowering businesses and fostering inclusive and sustainable economic growth across the region.”

Meanwhile, Jon Huntsman, vice chairman of Mastercard and Board Director of the Mastercard Impact Fund, remarked, “This partnership deepens the work we’re doing in the Asia-Pacific region to support entrepreneurs and small businesses, which are the lifeblood of communities and economies. By bolstering resilience to climate and economic shocks, we are putting more people, communities and entrepreneurs on the path to financial inclusion and prosperity.”

Lastly, Ari Sarker, president for Asia-Pacific at Mastercard, commented, “Despite their long-established significance to economies, MSMEs continue to be challenged by access to credit – the fundamental resource which can catalyze growth for them and their economies. For growth to be truly inclusive, closing the MSME funding gap needs to be a core focus for both public and private sectors. This partnership is a meaningful step in that direction.”

Manila, Philippines – The Asian Development Bank (ADB) and Mastercard have signed a memorandum of understanding (MOU) to promote financial inclusion and digital transformation across Asia-Pacific. The agreement reflects both organisations’ common objective of improving financial inclusion by supporting micro, small, and medium-sized enterprises (MSMEs) and women-owned businesses. It seeks to use digital innovation to promote equitable growth and the adoption of climate-friendly behaviours. 

ADB and Mastercard have committed to working together on projects that will increase financial accessibility, encourage the use of digital payments, and improve digital literacy in marginalised populations. Their main goals include encouraging inclusive economic development and closing the digital divide. To make sure that their cooperative efforts are in line with the main goal of creating a safe and sustainable digital economy, the parties have set guiding principles.

ADB recently granted a US$300m loan to help the Philippines’ financial inclusion aspirations. The loan aims to increase Filipinos’ access to financial services, particularly among underprivileged parts of the community, while simultaneously encouraging economic growth. 

The strategic partnership is a step toward a more inclusive and resilient digital economy in the Asia-Pacific region. ADB and Mastercard aim to create new opportunities, promote long-term growth, and have a lasting impact on future generations by working closely together.

Speaking about the partnership, Simon Calasanz, country manager, Philippines, Mastercard, said, “Mastercard has an extensive history of supporting MSMEs, and is committed to further collaborating with ADB in the Philippines to drive greater financial inclusion, broaden credit access, and ensure a safe and secure digital ecosystem for the evolving landscape.” 

Meanwhile, Suzanne Gaboury, director general of ADB’s private sector operations department, stated, “Financial inclusion is at the heart of ADB’s mission to promote sustainable development. Through this partnership with Mastercard, we are increasing our efforts to expand access to financial services and unlock opportunities for marginalised communities in the Philippines, and across the region.” 

Manila, Philippines – The Asian Development Bank (ADB), the regional bank headquartered in Manila, has announced that it has signed a $25m loan with Vietnam’s Tien Phong Commercial Joint Stock Bank (TPB) to expand access to finance of women-owned and -led small and medium-sized enterprises (WSMEs) in Vietnam. The project is also cofinanced by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) for $25m. 

Furthermore, the loan is accompanied by a $750,000 technical assistance grant to help TPB better meet the needs of WSMEs. The grant will be used to build TPB’s capacity to lend to WSMEs, hire staff, and promote its services to female borrowers. It will also enable TPB to use digital systems to analyze the underserved WSME market. The grant is funded by the Women Entrepreneurs Finance Initiative (We-Fi), which is hosted by the World Bank Group.

“We are very pleased to partner with TPB and We-Fi to support WSMEs, which are important channels to increase women’s participation in Vietnam’s economic development,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury.

“COVID-19 has severely affected many businesses, and initiatives such as this loan and grant will support particularly underserved female borrowers by helping TPB develop systems and procedures to improve their access to finance,” adds Gaboury.

ADB shares data that as of 2018, the majority of businesses in Vietnam are classified as SMEs, supporting 38% of the country’s employment and generating 40% of gross domestic product. But their access to finance is still a challenge, with only 37% of WSMEs able to obtain loans from banks, according to a 2017 study. 

“ADB, DEG, and TPB’s goals are uniquely aligned especially in our mutual support of WSMEs,” said TPB’s Chief Executive Officer Nguyen Hung.

 “We will continue to leverage our strength in digital banking to tailor products and services for WSMEs and plan to increase supply chain financing and support services, liquidity, and digital banking products to reach underserved customers,” added Nguyen Hung. 

TPB is one of the leading joint-stock banks in Vietnam. Currently, it has digital platforms targeted to help meet the needs of its retail and SME customers by offering innovative and customized products.

Singapore – Global innovation platform Plug and Play has recently concluded its APAC-centric summit last 1 to 2 June, in which the firm introduced three new programs for startups and SMEs. 

The three new programs are the ‘Sustainability Program’, ‘Business Solutions Accelerator by Facebook’, and its ‘GK – Plug and Play Program’. 

In the virtual event, it was announced that the ‘Sustainability Program’ seeks to provide the tools and network for startups with disruptive technologies that will allow them to empower big corporations to meet their green initiatives.

Part of the solutions instated include equipping SMEs forward thinking into creating sustainable supply chains, implementation of digital technologies for sustainable production, training and advisory for sustainable practices, and compliance or certification of sustainable practices. 

Jupe Tan, managing partner at Plug and Play APAC, commented, “This year we celebrate our 15th anniversary with a global team of almost 600 across 35 cities around the world. We will look to actively invest in technologies that focus on enhancing our living environment and address our resource constraints in a sustainable manner that reduces emissions and efficiently uses natural resources.” 

Meanwhile, the ‘Business Solutions Accelerator by Facebook’ will be made possible by Facebook and the Asian Development Bank (ADB) to which Tan describes as an innovation catered to looking into areas such as cleantech and clean energy, sustainable agriculture, inclusive fintech as well as inclusive healthcare.

Through the accelerator, Facebook is looking forward to nurturing and collaborating with technology partners that share Facebook’s commitment to improving the merchant experience for businesses across the Facebook family of apps. Program benefits include product education, dedicated Facebook mentors for guidance on product development and business growth, networking with fellow startups and ecosystem enablers, insights into industry and innovation trends.

Lastly, the ‘GK Plug and Play’ aims to make innovation within reach for enterprising groups and individuals. Plug and Play aims to build a smart future by connecting innovation to the brightest minds, as well as building a unique ecosystem as their mission that connects change-makers and leading organizations. So far, the accelerator program has run 8 batches and accelerated 123 startups giving them enhanced access to mentors, investors, and corporations.

On the program with Facebook and ADB, Tan said, “I am proud to announce that we have embarked on a regional partnership with the Asian Development Bank through ADB Ventures, the new venture arm of the ADB. Together with ADB Ventures, we hope to source for and invest in bold technology startups that are working to solve Asia Pacific’s biggest unsolved problems.