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"Feasibility Study on the Creation of an Investment Vehicle for the Financing of SMEs in Philippines"


  • SOLICITATION NUMBER: 0002017944
  • INSTITUTION:  IBRD/IDA , IFC , MIGA , ICSID
  • ASSIGNMENT LOCATION: Philippines
  • ISSUE DATE AND TIME: Sep 03,2025 05:10
  • CLOSING DATE AND TIME: Sep 17,2025 23:59

In Philippines; some of the largest lenders to MSMEs are small to medium sized financial institutions such as Rural Banks and Co-operatives; Savings banks and other NBFIs; who face similar constraints. Although a few of these financial Intermediaries; particularly those who are subsidiaries of large conglomerates; have access to bank financing; the terms of such funding are expensive. Also; these financial institutions do not have direct access to capital markets due to a combination of challenges; including their small capital base; which renders traditional capital market solutions uneconomical and the lack of alternative instruments and a risk-averse investor base.Considering these findings; IFC plans to explore the prospects of setting up an Investment Vehicle (¡°MSME InV¡±) that facilitates access to capital for MSMEs in the Philippines. The MSME InV could take the form of either a Multi-originator Securitization (¡°MOS¡±) vehicle; which would securitize MSME loans originated by multiple Financial Intermediaries; or an MSME Debt Fund (¡°Debt Fund¡±) that raises capital from investors and provides debt investments to Financial Intermediaries. Both structures aim to address the MSME financing gap by providing innovative solutions to scale lending and improve access to credit for underserved segments. The initiative would also explore the need for and feasibility of a de-risking solutions; within these structures to scale financing to MSMEs. To support this initiative; IFC seeks to retain a consulting firm (the ¡°Firm¡±) with significant experience in structured finance; including securitization transactions; debt funds; and credit enhancement facilities as well as a deep understanding of the legal and regulatory framework in the Philippines. The study will provide recommendations on the most viable structure to adopt.

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