IFC to Invest $130M in Asialink Finance Corporation to Boost Financial Inclusion for MSMEs in Philippines

Targeting Underserved Regions and Women-Owned Businesses, IFC Strengthens Grassroots Economic Growth

The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector, announced today an investment of up to $130 million in Asialink Finance Corporation (AFC). This initiative aims to enhance financial inclusion for Micro, Small, and Medium Enterprises (MSMEs) across the Philippines, particularly targeting underserved regions and women-owned or led MSMEs (WMSMEs).

The investment will allocate at least 60% of the funds to WMSMEs, addressing a critical gap in financial access for women entrepreneurs. Alongside financial support, IFC will assist AFC in adopting an Environmental and Social Management System (ESMS) framework and responsible finance principles aligned with international best practices.

Driving Growth Through Financial Inclusion

The initiative underscores AFC’s commitment to serving the unbanked and underbanked sectors, where traditional banking systems remain out of reach for many small businesses.

Jane Yuan Xu, Acting Country Manager for IFC Philippines, emphasized the broader economic impact of empowering MSMEs:

“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs. Every loan to an MSME can create jobs in local communities, driving the economy forward.”

In line with its strategy, AFC aims to reach MSMEs in underserved regions, helping them access the capital required for growth. Robert B. Jordan Jr., CEO of Asialink Finance Corporation Group of Companies, highlighted the importance of this partnership:

“With IFC’s support, we can expand lending to more MSMEs in regions historically excluded from formal financial systems. MSMEs are the backbone of the Philippine economy, and this investment will help them grow and thrive.”

Addressing Gaps in Financial Access

Data from Bangko Sentral ng Pilipinas (BSP) highlights stark disparities in financial access:

• Only 14% of the banking system’s loans serve businesses outside Metro Manila, despite 75% of MSMEs being located in these areas.
• The 2021 BSP Financial Inclusion Survey revealed that only 20% of women own formal bank accounts, compared to 26% of men.

The investment aligns with IFC’s broader strategy to foster financial inclusion in the Philippines. In 2024, IFC invested in fintech startups Salmon and First Circle, targeting underserved MSMEs and consumers. Additionally, IFC supported City Savings Bank’s $100 million social bond, focused on women’s financial empowerment.

Expanding Opportunities and Building Resilience

This latest investment is expected to:

• Create Jobs: Strengthen MSMEs and stimulate job creation in grassroots communities.
• Empower Women Entrepreneurs: Address gender disparities in financial access, fostering women-led business growth.
• Promote Sustainable Lending: Incorporate environmental and social risk management into AFC’s operations.
• Boost Regional Economies: Support MSMEs outside the capital, reducing economic inequalities.

Strengthening the Backbone of the Economy

Asialink Finance Corporation’s efforts, reinforced by IFC’s investment, are poised to drive a significant transformation in financial access for MSMEs. By prioritizing underserved regions and fostering gender-inclusive growth, the initiative is set to make a lasting impact on the Philippines' journey toward equitable and sustainable economic development.