Manila: The Asian Development Bank (ADB) has entered into a Risk Participation Agreement (RPA) with the Philippines' Security Bank Corporation (Security Bank) to expand supply chain finance access for small- and medium-sized enterprises (SMEs) in the country. The agreement marks the first RPA signed by ADB with a Philippine bank.

According to Philippines News Agency, under the partnership, ADB, through its Trade and Supply Chain Finance Program (TSCFP), will share and diversify credit exposure with Security Bank, enabling the bank to extend financing to support more local SME suppliers. This will help businesses receive earlier payments, manage cash flow more effectively, and strengthen operational stability within local and regional supply chains.

The ADB Country Director for the Philippines, Andrew Jeffries, emphasized, "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." He added that together with Security Bank, they 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.

SMEs in the Philippines often face challenges in accessing timely and affordable working capital, even when they have established trade relationships with larger buyers. The RPA allows Security Bank to extend financing support to more suppliers, helping local businesses remain competitive and create more jobs across the country.

The agreement was formally signed during a ceremony at the ADB Headquarters in Manila, with ADB Trade and Supply Chain Division Director Steven Beck and Security Bank Executive Vice President and Head for Wholesale Banking John Cary Ong signing the partnership.

Backed by ADB's AAA credit rating, TSCFP delivers guarantees and loans through more than 200 partner banks to support trade and create import and export opportunities for businesses. The program is a key partner in helping diversify trade both internationally and intra-regionally within Asia and the Pacific. Since 2009, it has supported over USD74 billion in trade, focusing on sectors that promote sustainable growth and regional integration.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members, 49 from the region.