ASIALINK Group (Asialink) has received a $130-million credit facility from the International Finance Corp. (IFC) to increase financing for micro, small, and medium enterprises (MSMEs).
“Over the next four years, we expect this partnership to help Asialink grow its MSME loan portfolio from about $150 million to about $535 million, and its women-owned MSME portfolio from about $76 million to about $300 million,” IFC Asia and the Pacific Financial Institutions Group Regional Industry Director Allen Forlemu said in a speech on Tuesday.
At least 60% of Asialink’s funds will support women-owned or women-led businesses.
Last year, Asialink was able to finance 20,214 MSMEs, 12,048 of which were women-owned or led.
The group is also planning to open more branches in Visayas and Mindanao this year.
Mr. Forlemu added that the IFC will help Asialink build systems and capabilities to support their growth by applying global best practices.
“More importantly, we estimate this expansion will help create between 16,600 and 23,800 jobs across the Philippine economy,” he added.
Meanwhile, Asialink Finance Corp. Chief Executive Officer Robert B. Jordan Jr. said that Asialink Group was on track to issue an initial public offering (IPO) by 2028, but the group could issue it earlier if economic growth in the next two years is consistently decent.
Asialink Group would need an additional five to six billion pesos in capital to issue an IPO. As of the third quarter last year, Asialink Group’s capital stood at P13 billion.
“It depends on the market conditions. We might do an earlier IPO if the market is right. Better economic conditions, continuous growth in the GDP (gross domestic product), and also our financial position because we might need more capital earlier. If our growth is sustained in 2025 and 2026, then we might need to go to the capital markets for more equity,” he said.
Mr. Jordan also said Asialink Group is expected to reach a net income of P2.2 to P2.3 billion this year as the company plans to be more aggressive in growing its loan portfolio.
As of the third quarter last year, Mr. Jordan said their year-to-date net income was about P1.2 to P1.3 billion.
The company will offer cars as collateral for MSME loans this year. It will also look to expand its loans which have real estate as collateral.
“We are also growing our MSME property acquisition. If the MSME wants to acquire a property, then we also want to finance that,” Mr. Jordan said.
However, the group could see an uptick in its nonperforming loans (NPL) ratio to about 2% from about 1% as of the third quarter last year.
“We’re actually trying to really maintain it at 1%. We’re trying to be more aggressive. We’re trying to really strike a balance in terms of being more aggressive and being able to penetrate more sectors of our society… But we are really committed to maintaining a level of NPL that is low compared to the industry,” Mr. Jordan said.
He added that Asialink Group’s loan book grows by an average of 30 to 40% every year. — Aaron Michael C. Sy
