The Asian Development Bank ( ADB ) has signed a US$115 million financing package ( in Philippine peso equivalent ) with Asialink Finance Corporation to expand its working capital, and support small and medium-sized enterprises ( SMEs ) in the Philippines, especially those owned by women.

The financing package, announced on December 9, consists of a US$50 million loan from the ADB, US$50 million from HSBC through the HSBC Asean Growth Fund, and US$15 million from Security Bank Corporation.

The ADB was the mandated lead arranger, bookrunner and structuring bank for the transaction, while HSBC was a joint mandated lead arranger and bookrunner. Security Bank Capital Investment Corporation acted as a mandated lead arranger.

The project is expected to increase Asialink’s total loans to SMEs from 8.8 billion pesos ( US$150 million ) to around 13 billion pesos, with more than half of the financing dedicated to SMEs that are women-owned. This will nearly double Asialink’s female entrepreneur borrowers to at least 20,000, and introduce tailored offerings to women business owners.

Non-bank financial institutions, says Bhargav Dasgupta, the ADB’s vice-president for market solutions, play a key role in providing services to unbanked SMEs. “This partnership between ADB and Asialink will enhance SMEs’ access to finance, especially for women entrepreneurs who face greater challenges in obtaining capital,” he notes. “This project showcases the ADB’s strong commitment to advancing financial inclusion and growth of SMEs, which are key drivers of the Philippine economy.”

The financing gap for SMEs in the Philippines, according to the ADB, is estimated at around 67 billion pesos to 180 billion pesos. Recent surveys have shown that half of the SMEs owned by men transact using bank accounts compared to only 24% of women. Only 14% of SMEs run by men have received approval for bank loans, which drops precipitously for women to only 4%.

“This partnership with ADB marks a transformative milestone in Asialink’s mission to empower SMEs across the Philippines, especially women-owned businesses that remain underrepresented in the financial sector,” adds Robert Jordan, Asialink’s CEO. “We are optimistic that with this collaboration, we can continue to expand our presence nationwide, introduce personalized loan products, digitize and innovate our loan processes, and ultimately ensure that entrepreneurs have access to reliable financial solutions.”

Asialink was established in 1997 and has become one of the leading non-bank financial institutions in the Philippines. Through 247 branches nationwide, it provides secure lending to SMEs using motor vehicles as collateral. SMEs account for more than half of their portfolio. Earlier this year, Asialink received a 4 billion pesos strategic investment from Creador V, an ADB investee fund managed by regional private equity investor, Creador, that supports best in class financial services companies with their expansion initiatives.