ADB, Security Bank partner to expand SME supply chain finance

By Parth Prabhudesai

Asian Development Bank has signed a Risk Participation Agreement with Security Bank to expand supply chain finance access for small and medium-sized enterprises (SMEs) in the Philippines.

The agreement marks the first risk participation partnership of its kind between the Asian Development Bank (ADB) and a Philippine bank.

Under the arrangement, ADB will share and diversify credit exposure through its Trade and Supply Chain Finance Programme, enabling Security Bank to extend additional financing support to local suppliers and businesses.

The initiative is expected to help SMEs improve access to working capital, receive earlier payments and better manage cash flow, while also strengthening the resilience of domestic and regional supply chains.

Andrew Jeffries, Country Director of the Asian Development Bank, said the partnership would help address financing gaps faced by smaller enterprises and create a scalable framework that could be replicated across the local market.

Many SMEs continue to face difficulties securing affordable and timely financing despite maintaining established relationships with larger corporate buyers. The new agreement is designed to improve liquidity access for suppliers and support their competitiveness in the market.

The agreement was signed in Manila by Steven Beck, Director of Trade and Supply Chain Finance at ADB, and John Cary Ong, Executive Vice President at Security Bank.

ADB’s broader Trade and Supply Chain Finance Programme currently works with more than 200 partner banks globally, providing guarantees and loans to facilitate international trade and improve financing access for businesses across supply chains.

The partnership reflects growing efforts among financial institutions and development lenders to strengthen SME financing ecosystems and support economic activity through improved trade finance infrastructure.