ADB, Security Bank launch SME financing pact

The Asian Development Bank (ADB) has entered into a Risk Participation Agreement (RPA) with the Philippines’ Security Bank Corporation to expand access to supply chain financing for small and medium enterprises (SMEs) in the country.

The agreement marks the first RPA between ADB and a Philippine bank and is expected to strengthen liquidity support for local suppliers through the bank’s lending network.

Under the partnership, ADB—through its Trade and Supply Chain Finance Program (TSCFP)—will share credit exposure with Security Bank, allowing the lender to extend more financing to SME suppliers involved in domestic and regional supply chains.

“This partnership demonstrates how ADB’s collaboration with local financial institutions is helping address financing gaps faced by SMEs and build more resilient supply chains,” said Andrew Jeffries.

“Together with Security Bank, we are creating a replicable model that can be expanded in the local market, helping SMEs across the country access the liquidity they need to grow and create jobs.”

ADB said many SMEs continue to face difficulty accessing affordable working capital despite established trade relationships with larger companies. The new arrangement aims to address this gap by enabling faster payments and improved cash flow.

The agreement was formally signed at the ADB headquarters in Manila by Steven Beck and John Cary Ong.

ADB’s TSCFP, backed by its AAA credit rating, works with more than 200 partner banks worldwide and has supported over US$74 billion in trade since 2009, focusing on initiatives that promote inclusive and sustainable growth across Asia and the Pacific.