IFC to invest $130M in Asialink fund 

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World Bank’s financing arm International Finance Corp. said yesterday it would provide up to $130 million in investment to Asialink Finance Corp. (AFC).

AFC, established in 1997, provides financing services to businesses and individuals in the Philippines. 

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

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IFC will also support the company’s implementation of 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,” 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.”

The IFC said 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 do not have the necessary collateral to access bank financing. 

AFC’s response

“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., CEO of AFC Group of Companies, said. 

“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 said.

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.

IFC also invested $100 million in a social bond issued by City Savings Bank last year, 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 augment their family’s income in addition to payments for healthcare, education and housing. 

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