Investment firm buys stake in Aspac Bank

MICRO, small and medium enterprises (MSMEs) are expected to benefit most from Cebu International Financial Corp. (CIFC)’s P200-million capital infusion into Aspac Rural Bank, as the investment strengthens the community bank’s capacity to meet rising credit demand across the Visayas, top officials said.

CIFC president and chief executive officer Ruben Almendras said the fresh capital will significantly strengthen Aspac’s capital base, allowing the rural bank to expand lending to small businesses, speed up loan processing, and scale up its digital banking capabilities.

CIFC is a private equity and investment firm with banking and property interests. It is the only one of the few finance companies with quasi-banking license granted by the Bangko Sentral ng Pilipinas that is based outside Metro Manila.

“We are a private equity investor,” Almendras said. “We look for profitable banks where we can put in capital, improve operations and grow with them.”

Aspac Rural Bank has long focused on MSMEs, which account for around 60 percent of its borrowers, spanning small traders, professionals, and medium-sized enterprises.

With the additional capital, the rural bank is expected to increase credit access for entrepreneurs that are often underserved by larger commercial banks due to stricter requirements.

“We have always been heavy on small and medium-scale enterprises,” Aspac Rural Bank chairman emeritus Augusto Go said, noting that rural banks play a critical role in grassroots financing, particularly outside major urban centers.

“This investment means more capital, more branches and faster growth,” Go said. “It allows us to move to the next stage of development.”

Aspac Rural Bank is a community-first rural bank offering savings, deposits, and loan products in the Philippines.

Aspac Rural Bank president and chief executive officer Jose Levi Villanueva said the new capital will also support Aspac’s push into hybrid banking — combining physical branches with digital services.

The bank is among a small group of rural banks nationwide that can already offer real-time, inter-branch transactions and mobile-based services, positioning it closer to the operating standards of larger banks.

Villanueva said the bank plans to open two additional branches in southern locations while relying more on technology to deliver full services without the cost of traditional branch expansion. It is also preparing to launch a digital wallet with no minimum balance requirement, aimed at students, families, and small entrepreneurs who need fast, low-cost banking services.

Almendras said the investment aligns with the firm’s strategy of acquiring stakes in profitable banking institutions with strong management teams and clear growth paths. They added that improving capital adequacy and digital infrastructure at Aspac will ultimately translate into faster loan approvals and broader financial inclusion for MSMEs.

“With stronger capital and better technology, we can lend more, lend faster, and manage risk better,” Almendras said. “That’s where MSMEs stand to gain the most.” / KOC