Breaking Barriers: ADI’s Local Currency Loan Unlocks Opportunities for Women Entrepreneurs in the Philippines

Australian Development Investments (ADI) has announced a landmark USD 3 million equivalent loan in Philippine pesos to ARQ SME Business Development Company (ARQ SME BDC), a women-led financial intermediary providing smart capital to growing select small and medium-sized enterprises (SMEs) in the Philippines.

The investment, delivered through ADI’s Investing in Women funding window, an initiative of the Australian Government, aims to accelerate women’s economic equality across Southeast Asia. The announcement was made during the 2X Global Summit in Manila, which convened over 100 leaders from government, finance, and gender-lens investing.

Why Local Currency Matters

For many SMEs in emerging markets, access to finance is only part of the challenge. Access to local currency funding is often the bigger hurdle. Borrowing in U.S. dollars or other foreign currencies exposes businesses to exchange rate volatility, creating repayment risks and limiting their ability to plan for growth.

Despite this, most development finance institutions (DFIs) and private investors are reluctant to take on foreign exchange (FX) risk, leaving local businesses shouldering the burden. This investment changes that dynamic.

By structuring this loan in pesos, ADI is sending a strong signal: inclusive finance must also be resilient finance, allowing entrepreneurs to grow without currency risk undermining their progress.

Supporting Inclusive Growth

ARQ SME BDC addresses a critical financing gap for the “missing middle”—businesses too large for non-bank financial institutions but too small for traditional bank and private equity. Many of these enterprises are led by women or serve women as employees, suppliers, and consumers.

Australian Ambassador to the Philippines, Marc Innes-Brown PSM, highlighted the importance of this approach:

“The Philippines is home to extraordinary Filipina entrepreneurs—but many face barriers when they seek funds to grow their businesses,” said Innes-Brown. “Australia is proud to partner with ARQ to help create more business opportunities for women and build economic growth that benefits women and men alike.”

A Strategic Partnership for Gender Equality

This is ADI’s first local currency impact loan and its second investment under the Investing in Women program, reinforcing Australia’s commitment to gender equality and sustainable economic development in Southeast Asia.

Abigail Tan, Co-Founder and Managing Partner of ARQ SME BDC, called the investment transformative:

“This local currency loan is a game-changer for ARQ and the businesses we support. It allows us to scale faster and ensure that gender smart enterprises can access growth capital without exposure to exchange rate volatility.”

Hannah Birdsey, CEO of Investing in Women, added:

“We’re excited to deepen our partnership with ARQ. This loan demonstrates that gender-lens investing can deliver strong financial outcomes while addressing systemic barriers—like the lack of local currency financing—that hold women back.”

This investment reflects Australia’s commitment to advancing gender equality and promoting inclusive economic growth in Southeast Asia. By providing local currency financing through ARQ SME BDC, ADI is supporting women-led enterprises and removing the currency risk that often limits their ability to grow. This approach demonstrates the power of gender-lens investing to deliver resilient financial returns while creating lasting social impact.