38909-014: SME DEVELOPMENT SUPPORT (Financing Access Improvement Project (36419-01)

Project Data Sheet (PDS): Overview


PSOD is proposing two components under the Public Sector's proposed SME Development Support Project (PHI 37764-01). First a Partial Credit Guarantee (PCG) Facility will be established for selected private financial institutions to enable them to provide local currency loans to small and medium-sized enterprises. ADB will establish a 50:50 risk sharing arrangement with the participating financial institutions (PFI) by issuing PCGs without a counter-guarantee from the Government. A sub limit of up to $10 million equivalent will be set up for each PFI. All PFIs must have proven ability and willingness to extend local currency loans to SMEs and follow prudent credit evaluation and due diligence guidelines acceptable to ADB. It is expected that the PCGs will be used to guarantee up to 50% of loans ranging from $100,000 to $500,000 per borrower. Second, PSOD is proposing an equity investment of up to $1 million (not to exceed 25% of total project cost) in the credit information bureau (CIB) , which is intended to function as the repository of all relevant credit information of corporate, individual, SME and microfinance borrowers. CIB is proposed to be established under the Credit Information Systems Act (CISA), which is currently being discussed in Congress and Senate. It will be established as a separate private sector entity under the Corporation Code. BSD intends to own up to 40% of the shares and 51% will be owned by industry associations, international financial institutions and other private sector investors. Read More

Country Philippines
Borrower/Equity Investment Name SME PCG FACILITY (PHI)
Project Number 38909-014
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Approval Numbers 7218
Approval Date 29 Sep 2005
Geographical Location Nationwide
Sector / Subsector Classification Finance
/ Small and medium enterprise finance and leasing
Safeguard Categories Environment: FI

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Project Data Sheets (PDS)

Responsible ADB Officer
Peter Marro
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Capital Markets and Financial Sectors Division

PDS Creation Date
29 Aug 2006

Last PDS Update
19 Feb 2008