Asialink seen to post solid growth with Creador’s backing

MANILA, Philippines – Asialink Finance Corp. is poised for significant growth following a strategic investment by Creador, one of the leading private equity firms in Southeast Asia.

Creador, which recently acquired an 18 percent stake in Asialink, anticipates exponential growth for the lender as it aims to meet the substantial unmet loan demands of the largely unbanked small and medium enterprises (SMEs) across the Philippines.

Creador managing director Omar Mahmoud highlighted the potential at a recent celebration marking the P4-billion investment of his company in Asialink.

Mahmoud said Asialink is just beginning to tap into the market for financial assistance to SMEs.

“Ninety-nine percent of the 1.2 million registered businesses in the Philippines are SMEs, and Asialink has served around 200,000 of them so far,” Mahmoud noted in a statement.

The investment from Creador, along with funding from local banks, development finance institutions (DFIs), and major international lenders, will enable Asialink to expand nationwide.

This expansion aims to reach more unbanked businesses, allowing them to grow, create jobs, and improve livelihoods, according to Robert B. Jordan Jr., CEO of Asialink.

Reflecting on the journey, Mahmoud jokingly said that he wished he had invested in Asialink when it had a starting capital of only P3 million in 1997. Today, Asialink’s valuation exceeds P20 billion.

Natural fit

“In 2022, we spoke to approximately 50 financial services companies in the country, and it became clear that Asialink was the natural fit for Creador given its leading market share and long-term track record,” Mahmoud said.

With Creador’s investment, Asialink now benefits from indirect investors including global development finance institutions, large pension funds, and university endowments. Jordan announced plans to introduce new products and services, enhance internal efficiencies, and bolster the company’s nationwide presence.

Mahmoud praised the visionary leadership of Jordan, who identified the lending gap for SMEs during his tenure as a loan officer. Jordan’s proposal eventually received backing from the family of Ruben Lugtu II, Asialink’s chairman, who provided the initial funds to start the company.

Lugtu commended Jordan for Asialink’s remarkable growth, and Mahmoud expressed optimism that Creador’s hands-on approach would yield significant benefits for the company.

With this new infusion of capital and strategic support, Asialink is set to become an even more formidable player in the financial services sector, driving economic growth and development across the Philippines.