ADB, Security Bank to offer SMEs supply-chain financing

THE Asian Development Bank (ADB) has entered a Risk Participation Agreement (RPA) with Security Bank Corp. to expand supply chain finance access for small- and medium-sized enterprises (SMEs).

The agreement marks the first RPA signed by the multilateral lender with a Philippine bank.

According to the ADB, the partnership will help businesses receive earlier payments, manage cash flow more effectively, and strengthen operational stability.

Under the agreement, the ADB, through its Trade and Supply Chain Finance Program (TSCFP), will share credit exposure with Security Bank, enabling the bank to extend support to more SME suppliers.

“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 in a statement on Tuesday.

“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.

The ADB said SMEs in the Philippines continue to face difficulties accessing timely and affordable working capital.

“The RPA allows Security Bank to extend financing support to more suppliers, help local businesses remain competitive, and create more jobs across the country,” it said.

The TSCFP delivers guarantees and loans through over 200 partner banks, helping diversify trade within and outside the Asia and the Pacific.

Since 2009, the program has supported over $74 billion in trade, with a focus on industries that promote sustainable growth and regional integration. — Justine Irish D. Tabile