SB Capital Investment Corporation, the wholly-owned investment banking arm of Security Bank Corporation, and RCBC Capital Corporation have successfully arranged and managed a P2-billion private placement of fixed rate notes for Asialink Finance Corporation.
In a statement, SB Capital said the signing of the privately-placed fixed rate notes facility marks Asialink’s initial foray into the debt capital market space with.
SB Capital’s parent company, Security Bank, led the list of participating noteholder banks for the transaction which also included Rizal Commercial Banking Corporation, EastWest Banking Corp., Philippine Bank of Communications and Union Bank of the Philippines.
SB Capital President and CEO Virgilio O. Chua underscored the pivotal role that banks and financing institutions such as Asialink play in fostering and promoting financial inclusivity in a fast-developing economy like the Philippines.
“Asialink, through its loan products such as Car/Truck Refinancing and Pre-owned & Brand-New Car/Truck Financing, MSMEs and individuals who may not be able to get the capital that they need through more conventional avenues, are still able to get the required funding, which aids in bridging this financing gap,” said Chua.
He noted that in a 2020 MSME Value Chain Rapid Response Survey, the United Nations Development Programme determined that 99.5 percent of business establishments domestically are micro, small and medium enterprises or MSMEs with such businesses providing 63 percent of the Philippines’ workforce while also contributing 40 percent of the nation’s gross domestic product.
Despite this, the 2021 Financial Inclusion Survey conducted by the Bangko Sentral ng Pilipinas showed that banks only accounted for four percent in terms of sources for funding for such borrowers.
Asialink intends to utilize the proceeds from the notes issuance to support and finance expansion of the company’s loan portfolio, refinance existing short-term debt obligations, and for general working capital requirements.
It offers collateral and non-collateral credit loans that cater to the financial needs of businesses, particularly small and medium enterprises, and individuals.
Asialink aims to assist the unbanked and underserved market through its 86 branches nationwide as of end-2022.
As of Dec. 31, 2022, collateralized loans accounted for 99.71 percent of the Company’s total loan portfolio.
The corporate notes, which had its initial drawdown date last August 25, 2023, are set to mature in three years’ time.