PNB, Discovery Capital Finance ink partnership to boost SME lending

PHILIPPINE National Bank (PNB) has partnered with Discovery Capital Finance Corp. (DCFC) for a loan facility to boost financing for small and medium enterprises (SMEs).

The two companies signed a loan facility agreement in a strategic partnership that is expected to improve SMEs’ access to funding.

“Our agreement with PNB is a clear signal of Discovery Capital Finance Corp.’s commitment to financial inclusion for the underserved business community,” DCFC President Diosdado Chua Salang, Jr. said.

“By partnering with institutions like PNB, we can effectively amplify our reach beyond our branches, ensuring that crucial capital flows into regional economies where it is needed most,” he added.

The loan facility will give DCFC additional funding capacity to let it extend flexible and more accessible financing solutions to its SME clients nationwide.

“This move aligns with PNB’s sustained commitment to the SME sector, often referred to as the backbone of the Philippine economy,” the companies said. “For many SMEs, access to capital remains the biggest hurdle to their expansion, especially if they lack collateral or a long credit history. This partnership aims to bridge that gap.”

The funding will be mainly used for working capital loans that will help SMEs finance inventory, fulfill large contracts, purchase new equipment, and manage their cash flow.

“By providing capital, the partnership empowers small businesses to execute their expansion plans, which in turn leads to increased production, more employment opportunities, and greater contribution to the local tax base.”

Data from the Bangko Sentral ng Pilipinas showed that loans granted by banks to micro, small, and medium enterprises grew by 7.13% year on year to P536.51 billion as of end-September, which was equivalent to just 4.45% of their total loan portfolio of P12.049 trillion.

DCFC is a financing company  regulated by the Securities and Exchange Commission. 

Meanwhile, PNB’s net income rose by 25.79% year on year to P6 billion in the third quarter. This brought its nine-month profit to P18.51 billion, up by 22.91% from P15.06 billion a year prior.

The bank’s shares rose by 0.30 centavos or 0.59% to close at P50.90 each on Wednesday. — Aubrey Rose A. Inosante