This marks the first Risk Participation Agreement (RPA) forged by ADB with a Philippine bank.
Under the agreement, ADB will share and diversify credit exposure with Security Bank through its Trade and Supply Chain Finance Program (TSCFP), allowing the lender to extend more financing support to local SME suppliers.
The initiative aims to help businesses receive earlier payments, improve cash flow management, and strengthen operational stability amid growing demands across local and regional supply chains.
Financing gap
SMEs in the Philippines continue to face challenges in securing timely and affordable working capital despite maintaining established relationships with larger buyers and corporations.
By leveraging ADB’s backing, Security Bank is expected to broaden financing support to more suppliers, enabling smaller businesses to remain competitive and sustain operations.
“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,” ADB Country Director for the Philippines Andrew Jeffries said.
“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,” he added.
Regional trade
The agreement was formally signed during a ceremony at ADB headquarters in Manila by ADB trade and supply chain division director Steven Beck and Security Bank executive vice president and head of wholesale banking John Cary Ong.
ADB said its TSCFP, backed by the multilateral lender’s AAA credit rating, provides guarantees and loans through more than 200 partner banks worldwide to support trade and create import and export opportunities for businesses.
Since 2009, the program has supported more than $74 billion in trade transactions, focusing on sectors that promote sustainable growth, stronger regional integration, and diversified trade across Asia and the Pacific. —Ed: Corrie S. Narisma
