STANDARD CHARTERED PLC (StanChart) on Monday signed a $75-million social financing deal with Asialink Group, marking a milestone that could expand the local lender’s loan capacity and bring its initial public offering (IPO) timeline forward to 2027.
Ana Maria Alba, Standard Chartered head of bank and broker dealers for the Philippines, said the facility aims to fund Asialink Finance Corp.’s socially inclusive lending initiatives, particularly for micro, small and medium enterprises (MSME).
“By directing at least 70% of the facility to MSMEs, the facility directly supports growth of small businesses and female entrepreneurs in the Philippines, fostering job creation and economic development,” she said at the signing ceremony in Pasig City.
The deal represents Standard Chartered’s first syndicated social loan to a nonbank financial institution in the country. Its co-lenders include Bank of China (Hong Kong) Ltd. – Manila Branch, Bank of China (Malaysia) Berhad, Chang Hwa Bank – Manila Branch, First Commercial Bank – Manila Branch, Hua Nan Commercial Bank – Manila Branch and Taichung Commercial Bank.
Asialink Group Chief Executive Officer Robert B. Jordan, Jr. said the financing highlights global investors’ confidence in the company and in the Philippines’ financial system.
“Strengthening our balance sheet directly creates opportunities for small businesses, communities, and the local economy,” he said. “Partnering with Standard Chartered connects Asialink to global best practices in sustainability, risk management and governance, aligning perfectly with our long-term strategy.”
Mr. Jordan said Asialink targets to disburse P4 billion to P4.5 billion monthly from the funding by 2026, with a stronger push into SME lending. “We haven’t really pushed that product in the past for the simple reason that we didn’t have the money.”
Asialink Group Finance Director Meynard M. Mendoza said the company expects the funding to lift its loan portfolio to about $48.7 billion by yearend, from P41.9 billion as of the second quarter, 57% of which served MSMEs. The group’s bad loan ratio remained below 2% as of June.
“With competitive interest rates coupled with fast processing time, the Group is poised to serve a larger share of the market while continuing to help its core clients in the unbanked and underserved sector,” Asialink said in a statement.
Mr. Jordan said Asialink’s IPO plans remain on track, noting that debt covenants with creditors could push the company to tap equity markets by 2027.
“By that time, we [might] explore ways of raising more capital to be able to bring back our debt accumulation to an acceptable level,” he added.
Asialink Finance Corp., one of the Philippines’ biggest nonbank lenders, serves people and MSMEs through its more than 500 branches nationwide. It financed 159,523 accounts in April to June. — Katherine K. Chan
