PNB inks loan facility agreement with DCFC to boost SME lending

The facility will be used to grant working capital loans to SMEs.

Philippine National Bank (PNB) has signed a loan facility agreement with Discovery Capital Finance Corporation (DCFC) to boost lending to small and medium enterprises (SMEs).

The new loan facility will provide DCFC with additional funding capacity, which it will then use to offer financing solutions to its SME clients, according to a press release.

The PNB-DCFC loan facility will be used to grant SMEs working capital loans. SMEs are expected to use the proceeds to finance inventory, fulfill large contracts, purchase new equipment, and manage their cash flow more effectively.

The SME sector accounts for over 99% of all registered businesses in the Philippines, according to data from the Department of Trade and Industry (DTI).