Three subsidiaries of a leading Philippine non-bank financial institution ( NBFI ), Asialink Group, accessed the peso bond market on the back of the guarantee provided by Credit Guarantee & Investment Facility ( CGIF ), a trust fund of the Asian Development Bank ( ADB ), pricing three separate social corporate note offerings totalling 4 billion pesos ( US$68 million ).

Asialink Finance Corporation printed five-year, fixed-rate amortizing social corporate notes amounting to 2 billion pesos, while Global Dominion Financing and South Asialink Finance Corporation – both first-time issuers – priced three-year, fixed-rate amortizing social corporate notes amounting to one billion pesos each. The social bond notes, announced on December 23, were issued under the Asean Social Bond Standards by the Asean Capital Markets Forum and the Social Bond Principles by the International Capital Market Association ( ICMA ).

CGIF’s guarantee enabled the Asialink Group to extend the maturity profile of their debt, diversify funding sources, and access new investors. The issuances will also enhance the group’s ability to support more micro, small and medium-sized enterprises ( MSMEs ), which account for a significant portion of businesses and employment in the Philippines, thereby fostering inclusive economic growth, employment, and financing of the underbanked.

The three issuances mark several milestones: CGIF’s first Philippine peso transactions since 2018, the first CGIF-guaranteed peso deals issued under the Asean Social Bond Standards and ICMA’s Social Bond Principles, and the largest corporate notes supported thus far by CGIF.

Security Bank Capital Investment Corporation acted as the mandated lead arranger and bookrunner for the transaction. The second-party opinion on Asialink Group’s social finance framework was provided by DNV ( Thailand ), while the ADB provided the technical assistance for the development of the framework.

CGIF chief executive officer Hongwei Wang describes the issuances as a demonstration not only of CGIF’s drive to promote the Asean local currency thematic bonds, but also of its recognition of the role that NBFIs play as conduits of economic growth, employment, and inclusive access to credit.

“CGIF’s guarantee marks an important milestone for the Asialink Group as it strengthens our funding profile, broadens our investor base and supports the continued execution of our social finance strategy,” says Asialink Group CEO Robert Jordan Jr. “These corporate notes will enable us to expand financing access for MSMEs and underserved segments, reinforcing our commitment to inclusive and sustainable economic growth in the Philippines.”

“The transaction demonstrates how CGIF’s credit enhancement, together with Asialink Group’s established MSME platform, can facilitate efficient access to the capital markets while supporting the continued expansion of MSME financing,” adds Security Bank Capital’s president and CEO Virgilio Chua.

Incorporated in June 1997, Asialink specializes in secured MSME lending with vehicles as collateral. It was set up with the primary purpose of extending credit facilities to customers and to industrial, commercial or agricultural enterprises. It was authorized by the Philippine Securities and Exchange Commission to operate as a financing company in January 2004. Currently, it has a total loan portfolio of 39 billion pesos and over 500 branches nationwide.