KUALA LUMPUR (Feb 28): Private equity firm Creador has invested four billion pesos (RM340 million) in Asialink Finance Corporation, a leading lender to small and medium enterprises.

In a statement on Wednesday, Creador said the investment gives the firm an 18% stake in Asialink and a seat on its board of directors.

It said Asialink will use the funds to expand its lending capacity and support the growth of SMEs, the backbone of the economy and a major generator of jobs all over the Philippines.

Aside from funding Asialink’s expansion across the country, Creador will help improve the lender’s operational efficiency, introduce international banking partners and leverage its expertise from investing in multiple non-banking financial corporations to support business innovation and automation.

Creador country head of Philippines and managing director Omar Mahmoud said with the investment, hardworking business owners will gain access to the financial system as the company expands geographically, launches new products and leverages data to digitalise its services.

Asialink chief executive officer Robert Jordan, Jr said with Creador, Asialink is primed for further growth to help the largely unbanked part of the business community.

“This partnership is envisioned to strengthen the SMEs and make them a major contributor to economic growth just like in other developed economies,” he said.

This partnership underscores the commitment of both parties to drive Asialink towards sustained growth and market leadership, said Jordan.

Paulton & Company acted as Asialink's financial adviser for this transaction and Gorricetta as legal adviser to Creador.