MANILA – Asian Development Bank has signed a Risk Participation Agreement with Security Bank Corporation aimed at expanding supply chain finance access for small and medium-sized enterprises in the Philippines.

The agreement is the first Risk Participation Agreement entered into by ADB with a Philippine bank.

Under the partnership, ADB, through its Trade and Supply Chain Finance Program, will share and diversify credit exposure with Security Bank, allowing the bank to provide more financing support to local SME suppliers.

The initiative is expected to help businesses secure earlier payments, improve cash flow management, and strengthen operational stability within local and regional supply chains.

“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,” said Andrew Jeffries.

“Together with Security Bank, we 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,” he added.

ADB noted that many SMEs in the Philippines continue to face difficulties accessing timely and affordable working capital despite having established trade relationships with larger companies.

The agreement will allow Security Bank to widen financing support for more suppliers, helping businesses remain competitive and generate additional employment opportunities.

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

Supported by ADB’s AAA credit rating, the Trade and Supply Chain Finance Program provides guarantees and loans through more than 200 partner banks to support trade and create import and export opportunities for businesses.

Since 2009, the program has supported more than USD74 billion in trade transactions, particularly in sectors that promote sustainable growth and regional integration.

Founded in 1966, ADB is a multilateral development bank owned by 69 members, including 49 from Asia and the Pacific, and supports sustainable and inclusive growth across the region.