45749 - Asialink Loan

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Summary of Investment Information

Project Number

45749

Company Name

ASIALINK FINANCE CORPORATION

Date SPI Disclosed

Aug 28, 2024

Country

Philippines

Region

East Asia and the Pacific

Projected Board Date

Sep 27, 2024

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jun 29, 2025

Department

CF4E1 - Regional Industry - FIG Asia & Pac/FIG South East Asia & Pacific

Industry

Financial Markets

Previous Events

Approved : Oct 9, 2024
Signed : Dec 23, 2024
Invested : Jun 27, 2025

Sector

Finance Companies

Project Description

The proposed investment aims to support Asialink Finance Corporation (AFC) to expand its financing towards MSMEs, including WMSMEs, through a senior loan financing package of up to U$130mn that includes IFC own account and B1 Loan/Parallel Loan mobilization. IFC will also provide a cross-currency swap to help AFC hedge the currency and interest rate risk from the IFC investment.

Incorporated in 1997, AFC is one of the leading Non-Bank Financial Institutions (NBFI) in the country. It is part of the Asialink Group of Companies (the Group) which includes Global Dominion Financing Inc. (GDFI) and South Asialink Finance Corporation (SAFC). The Group focuses on providing vehicle-backed financing to MSMEs and retail clients.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management	7.0
Guarantee
Loan	100.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to MSME (mix of Micro and SME)
Syndications	Loans to MSME (mix of Micro and SME)
Client Risk Management	Loans to MSME (mix of Micro and SME)
Syndications	Loans to MSME (mix of Micro and SME)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

At the Project level, IFC anticipates that the project will help AFC grow its loan portfolio of MSMEs, including WMSMEs. This will help reduce the access to finance gap for this segment. At the market level, IFC anticipates that the Project will promote greater competitiveness in the MSME financing space by demonstrating the viability of lending to this space, and encouraging other players to follow suit or develop more strategies, models, and products that is able to cater to the requirements of MSMEs.

IFC will provide both financial and non-financial additionality. Financial additionality will be from the provision of longer-term financing of up to 4 years, which is not readily available in the market for an NBFI. This is expected to allow the Company to further grow its MSME loan portfolio and at the same time attain better asset-liability matching. In addition, IFC is expecting to mobilize additional financing from B-loan/parallel loan lenders, bringing in additional financing and supporting the diversification of AFC’s funding sources. Non-financial additionality will be from standard setting which includes helping improve AFC’s standards in the areas of environmental and social (E&S), and responsible finance.

E&S Category Rationale / Risks and Mitigation

The proposed project consists of a loan package to Asialink Finance Corporation (AFC) to support the expansion of its small and medium enterprise (SME) lending activities. AFC is a nonbanking finance institution (NBFI) in the Philippines that primarily provides vehicle or vehicle-backed financing to individuals, micro enterprises, and SMEs. It is expected that two of AFC’s sister companies, Global Dominion Financing Inc (GDFI) and South Asialink Finance corporation (SAFC), will be integrated with AFC to form one business entity. Both GDFI and SAFC are NBFIs in the Philippines and are mainly involved in similar vehicle or vehicle-backed financing activities. The project will not support any higher-risk activities that involve (a) involuntary resettlement; (b) potential adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; (d) risk of significant retrenchment or (e) significant occupational health and safety risks. Coal-related activities will not be allowed for the project. The project has medium E&S risks and is therefore categorized as an FI-2 project in accordance with IFC's Environmental and Social Sustainability Policy. The primary E&S risks are associated with the SME activities financed by the project, which may include site -specific risks such as occupational health and safety, waste and wastewater discharge, and labor and working conditions. The applicable E&S performance requirements for the project will be the IFC Exclusion List and relevant national E&S laws and regulations. AFC, as well as GDFI and SAFC if integrated into AFC, will also be required to adhere to the Performance Standard 2: Labor and Working Condition for their own human resources management.

Asialink Group Companies, the parent company of AFC, GDFI and SAFC, is currently in the process of developing an environmental and social risk management system (ESMS) for AFC, GDFI and SAFC. However, specific roles and responsibilities for E&S management have not yet been assigned at either the group or the subsidiary levels. As part of the project conditions, AFC, as well as GDFI and SAFC if integrated into AFC, will be required to (i) designate an ESMS officer, (ii) provide E&S training, and (iii) develop and implement an E&S risk management system in accordance with the applicable E&S performance requirements. Additionally, AFC and GDFI and SAFC if integrated with AFC, will be required to enhance their own human resources management to align with the requirements outlines in Performance Standard 2.

S.no	Title	Anticipated Completion Date
1	ESMS officer nomination	09/30/2024
2	E&S training	10/18/2024
3	ESMS development	10/18/2024
4	ESMS implementation	12/17/2024
5	Human resource improvements	01/16/2025

Contacts

For Inquiries About the Project, Contact

Asialink Finance Corporation
Eillen Mangubat
President and Chief Operating Officer
+639175775562
apples.mangubat@asialinkfinance.com.ph
Suite 210 AIC Gold Tower Emerald Avenue cor Garnet Road, Ortigas Center, Pasig City
https://www.asialinkfinance.com.ph/

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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