FEATURED ARTICLE

PHILGUARANTEE, teams up with DCFC

State-owned Philippine Guarantee Corp. (PHILGUARANTEE) has teamed up with Discovery Capital Finance Corp. (DCFC), one of the fastest-growing financing institutions in the Philippines, to expand credit access for small and medium enterprises (SMEs) across the country.

The strategic alliance leverages PHILGUARANTEE’s role as the principal agency for state guarantee finance. By providing credit guarantees on loans extended by DCFC, PHILGUARANTEE shares in the credit risk associated with lending to the crucial SME sector, widely recognized as the backbone of the Philippine economy.

“This is a transformational partnership for us and, more importantly, for Filipino entrepreneurs,” said DCFC president and chief executive Diosdado Salang Jr.

“The guarantee from PHILGUARANTEE covers a portion of the outstanding principal, protecting DCFC from credit risk,” he said.

The sovereign guarantee mitigates DCFC’s credit risk exposure, addressing information asymmetry—a common challenge in SME lending that often raises the perceived risk for financial institutions.

Source: Manila Standard by Othel V. Campos Published on: December 5, 2025, 9:39 PM
(https://manilastandard.net/business/314677019/philguarantee-teams-up-with-dcfc.html)