ASIALINK Finance Corp. has secured a P120-million credit line from Taiwan’s Mega International Commercial Bank Co. Ltd. (Mega ICBC) to boost lending to small businesses.
The partnership will help expand micro, small, and medium enterprises’ (MSMEs) access to financing, Asialink said in a statement.
“Our partnership with Mega ICBC is a meaningful step in widening our capacity to serve more MSMEs across the country. At the heart of this collaboration is our belief that inclusive financing leads to inclusive growth because when small businesses succeed, local economies thrive,” Asialink President and Chief Executive Officer Samuel Z. Cariño said.
The financing company said it will use the additional funding to support MSMEs, including small retailers, service providers, and transport operators, and provide them with working capital to grow their businesses, which would help lead to the creation of more jobs.
“The agreement also advances Asialink’s goal of strengthening grassroots enterprise development as a pathway toward broader and more inclusive economic growth,” it said.
The partnership is also in line with Mega ICBC’s objective of supporting organizations to help drive inclusive development.
“More than their strong growth outlook, we chose to partner with Asialink because of their clear commitment to making financial services accessible to Filipino communities. We believe in Asialink’s mission to uplift underserved entrepreneurs and are proud to support their efforts in creating a more inclusive financial ecosystem in the Philippines,” Mega ICBC Vice-President and General Manager Kuo Yao-Yu said.
In January, Asialink received a $130-million credit facility from the International Finance Corp., the private sector lending arm of the World Bank Group. In December last year, it also signed a $115-million financing package with the Asian Development Bank to expand its working capital.
Both funding packages aim to boost support for small businesses in the Philippines, particularly those owned or led by women.
Last week, Mr. Cariño said that it will release in July a loan product called the Women’s Access to Inclusive Support, which is targeted towards women entrepreneurs.
The company targets to reach P24 billion in loan releases this year, he said.
Mr. Cariño added that he is optimistic that the firm’s net income will hit P2 billion this year, up from P1.1 billion in 2024.
Asialink secured a P4-billion strategic investment from Malaysian equity firm Creador in February last year. — A.M.C. Sy
