Asialink raises P2 billion from debt capital market

MANILA, Philippines — Asialink Finance Corp. has raised P2 billion from its maiden foray into the debt capital market, the proceeds of which will finance the expansion of its loan portfolio.

Asialink recently signed a P2 billion privately placed fixed rate notes facility.

SB Capital Investment Corp., the wholly owned investment banking arm of Security Bank Corp., together with RCBC Capital Corp. arranged and managed the issuance.

Asialink intends to utilize the proceeds from the notes issuance to support and finance expansion of its loan portfolio.

It will also use the funds to refinance existing short-term debt obligations, as well as for general working capital requirements.

Asialink offers collateral and non-collateral credit loans that cater to the financial needs of businesses, particularly small and medium enterprises and individuals.

The firm lends about P1.3 billion per month to companies that find it hard to borrow from banks.

The corporate notes, which had its initial drawdown date last August 25, 2023, are set to mature in three years’ time.

Meanwhile, SB Capital’s parent company, Security Bank, led the list of participating noteholder banks for the transaction which also included RCBC, EastWest Bank, Philippine Bank of Communications and Union Bank of the Philippines.

SB Capital emphasized the important role of financing institutions such as Asialink in fostering and promoting financial inclusivity in a fast-developing economy like the Philippines.

Last year, the earnings of Asialink jumped by 43 percent to P2.65 billion on the back of a 44-percent surge in revenues to P3.1 billion fueled by a post-COVID recovery and robust demand for second-hand cars.

Asialink opened additional branches, augmented its sales team and partnered with more car dealers, translating to a 27 percent jump in releases to P9.12 billion in 2022.

The financing firm is planning to increase its footprint to 160 branches by end-2023.