International Finance Corporation (IFC) has proposed to invest upto PHP1 billion ($20 million) to Radiowealth Finance Company Inc, a Philippines-based company providing financial services through various kind of loan products.
According to a disclosure by IFC, it is providing a seven-years senior loan from its own account to expand company’s financing activities which are targeted towards the small and micro-enterprise sector in rural areas.
Headquartered in Madaluyong City, Philippines, Radiowealth was started in 1964 and is a member of the Guevent Group of Companies. It focuses on micro and small entrepreneurs.
The company operates through its 126 branches and 97 sales extension and business center offices. Radiowealth’s more than 80 percent portfolio are an average loan size of PHP200,000 ($4,000).
IFC is also in discussions with the company to provide advisory services for risk management and banking on women. This advisory work will help Radiowealth build a risk management framework, and the right business strategy and value proposition, to support expanding its services to the unbanked segment, particularly to women entrepreneurs, it said in the disclosure.
Although IFC has been actively investing in Southeast Asia region but this will the first investment in Phillipines in the year. Its last investment in the country was in August 2016 when it proposed to back newly launched PE firm Sierra Madre with upto $15 million.
Sierra Madre is co-founded by serial entrepreneur and operations specialist Martin Lorenzo, and PE veteran Alasdair Thomson.