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

• Country: Philippines
• Summary: Feasibility Study on the Creation of an Investment Vehicle for the Financing of SMEs in Philippines
• PHT Ref No: 125627770
• Deadline: 17 Sep 2025
• Financier: World Bank (WB)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 0002017944
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• Description:
• In Philippines, some of thelargest lenders to MSMEs are small to medium sized financial institutions suchas Rural Banks and Co-operatives, Savings banks and other NBFIs, who facesimilar constraints. Although a few of these financial Intermediaries,particularly those who are subsidiaries of large conglomerates, have access tobank financing, the terms of such funding are expensive. Also, these financialinstitutions do not have direct access to capital markets due to a combinationof challenges, including their small capital base, which renders traditionalcapital market solutions uneconomical and the lack of alternative instrumentsand a risk-averse investor base.Considering these findings, IFCplans to explore the prospects of setting up an Investment Vehicle (“MSME InV”)that facilitates access to capital for MSMEs in the Philippines. The MSME InVcould take the form of either a Multi-originator Securitization (“MOS”) vehicle,which would securitize MSME loans originated by multiple FinancialIntermediaries, or an MSME Debt Fund (“Debt Fund”) that raises capitalfrom investors and provides debt investments to Financial Intermediaries. Bothstructures aim to address the MSME financing gap by providing innovativesolutions to scale lending and improve access to credit for underservedsegments. The initiative would also explore the need for and feasibility of ade-risking solutions, within these structures to scale financing to MSMEs. To support this initiative, IFC seeksto retain a consulting firm (the “Firm”) with significant experience in structuredfinance, including securitization transactions, debt funds, and creditenhancement facilities as well as a deep understanding of the legal andregulatory framework in the Philippines. The study will provide recommendationson the most viable structure to adopt.
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• Documents:

 Tender Notice

TOR-for-Firm-Recruitement-_-Investment-Structures-for-MSME-Financing.pdf