Asialink to grow client base after fresh capital

NON-BANK financing company Asialink Finance Corp. is keen on doubling its client base composed of small-scale and medium-sized enterprises (SMES).

In a news briefing last Wednesday, Asiaink CEO Robert B. Jordan Jr. said the company targets 100,000 SMES more to its current client base of 100,000 businesses spread across the three firms that executives manage: AFC, Global Cebuana Finance Inc. (GCFI) and South Asialink Finance Corp. (SAFC).

Jordan said these are customers with outstanding loans with the companies and do not include those who have already paid their obligations.

“We want to expand this, probably double this next year,” the executive said.

According to Jordan, the AFC is targeting to disburse a total of P24 billion while GCFI and SAFC aim to disburse P13 billion and P8 billion, respectively, in loans to SMES. The executive said the disbursements will all depend on the companies’ ability to obtain funding.

The latter began the same day that Jordan and other AFC executives formally sealed an agreement with Malaysia-based private equity firm Creador Sdn. Bhd. to park P4 billion of its money in AFC. This fresh cash boosts AFC’S capital to P12 billion.

Creador’s P4-billion investment, equivalent to an 18-percent stake in Asialink, “underscores the commitment of both parties to drive Asialink towards sustained growth and market leadership,” Jordan said last February. Paulton & Company acted as Asialink’s financial advisor for this transaction. (See https://businessmirror.com.ph/2024/02/28/ malaysian-equity-firm-to-fundasialinks-lending-operation/)

“Asialink has always been deeply committed to their success and with this strategic alliance, we are poised to make an even greater impact,” Jordan said as the company aims to “empower entrepreneurs, unlock opportunities and catalyze growth.”

“There are over a million SMES in this country—hardworking Filipinos who do not have access to credit... They are the backbone of this country and if this country is going to be able to continue its growth journey, those SMES need to be supported,” Creador Managing Director Omar Mahmoud said.

AFC is also looking forward to its initial public offering not later than 2028 wherein, Jordan said, the company’s capital would P30 billion, with 20 percent floated in the market.

To reach this goal, Jordan said the company’s funding strategy is anchored on raising funds from local, commercial and universal banks. Its agreement with Creador also carries the promise the Malaysian private equity firm would broker potential deals with the Asian Development Bank and the International Finance Corp. in the future.