Asianlink Finance Corp., one of the top online financing companies in the Philippines, said over the weekend it issued P2 billion worth of fixed-rate three-year corporate notes as it diversifies its funding sources to raise more funds for relending to small and medium companies that have little or no access to bank loans.
The issuance of corporate notes was its initial foray in the capital market, and Asialink chief executive Roberto Jordan said in a statement that small businesses needed funds to grow.
“They are the backbone of our economy, and their growth is everybody’s growth. Asialink is their link, and we will continue to raise the funds they need. That is our mission,” Jordan said.
SB Capital Investment Corp. and RCBC Capital, acting as joint lead arrangers and managers, committed P1 billion each for offering to their clients.
Asialinks’ notes facility agreement was signed with representatives from the participating noteholder banks which include Rizal Commercial Banking Corp., Security Bank Corp., EastWest Bank, Philippine Bank of Communications and Union Bank of the Philippines.
“This demonstrates the industry-wide recognition and support for Asialink’s growth initiatives,” said Jordan. Asialink raises funds for relending largely from banks.
Jordan said the three-year notes “offer investors a unique opportunity with fixed interest rates, providing stability and predictability in their investment returns”.
Asialink serves micro-, small and medium-scale companies that banks, partly because of existing tight lending rules, could not serve. These companies make up 99 percent of total businesses in the Philippines.
Asialink has more than 45,000 of these borrowers, but Jordan said there are still so many that need to have access to funds. He said Asialink should raise more funds to cover these unbanked companies.
Asialink earlier raised P1 billion from Yuanta Saving Bank and Small Business Corp. also for relending.
It lends about P1.3 billion a month to its clients and has a repayment rate that is much better than that of banks.
The company reported a 44-percent growth in revenues of P3.096 billion in 2022 from P2.152 billion in 2021. Its asset value went up by 39 percent to P11.369 billion.
Asialink was formed in June 1997, with a capitalization of just P3 million. Today, it has over 1,000 employees, thousands of independent loan consultants, and more than 116 branches nationwide.