Asialink Finance secures P500-million credit facility from Cathay United Bank

ASIALINK FINANCE Corp. (AFC) has secured a P500-million sustainability-linked social credit facility from Taiwan-based Cathay United Bank to boost financing for underserved sectors.

The credit facility will help expand AFC’s lending to micro, small, and medium enterprises (MSMEs) in rural areas, unbanked individuals, and women-owned businesses in the country, it said in a statement on Thursday.

“These sectors serve as vital engines of the Philippine economy, encouraging increase in employment and fostering local resilience. Through this partnership, AFC is helping close that gap by delivering responsive financing where it is needed most.”

The sustainability-linked facility is also aligned with the company’s financing strategy that has measurable social performance targets, it added.

“This ensures that growth in lending is directly tied to real progress in financial inclusion and responsible financing,” AFC said.

“The facility underscores AFC’s continued commitment to advancing financial inclusion and expanding access to responsible financing solutions across underserved communities in the Philippines.”

The company said this will strengthen its ability to provide accessible financing to key sectors that are among the most exposed to the economic impact of the Middle East war.

“The move comes at a time when MSMEs are navigating evolving market conditions, highlighting the critical role of flexible and accessible funding solutions in sustaining their operations and growth.”

MSMEs account for about 99% of businesses in the Philippines and contribute roughly 40% of economic output.

In December, AFC secured $50 million in additional financing support as more funders joined the Asian Development Bank’s existing credit facility for the company through accession, bringing the total loan facility to $165 million. This is meant to support its lending to MSMEs, with a focus on female-owned businesses.

AFC earlier said it is looking to continue diversifying its loan offerings this year and expanding its presence across the country to bring its branches to less than 300 by yearend from over 250 in December 2025.

Its loan disbursements also grew by 6% last year to P16.6 billion across its portfolio. It assisted 34,611 MSMEs nationwide and financed more than 3,000 women-led enterprises through its Women’s Access to Inclusive Support or WAIS loan. — A.M.C. Sy