ADB Grants ₱1.75‑B Credit Facility to Boost Financing for Philippine MSMEs

ADB Grants ₱1.75‑B Credit Facility to Boost Financing for Philippine MSMEs

MANILA – The Asian Development Bank (ADB) has extended a ₱1.75‑billion credit facility to Fuse Financing Inc., a move expected to expand access to capital for micro, small, and medium enterprises (MSMEs) across the Philippines—particularly those led by women.

ADB Director for Private Sector Financial Institutions Suhail Khan said the initiative is aligned with the national agenda to strengthen MSME competitiveness by widening access to affordable and technology‑enabled financing.

“I think it is a matter of pride for the Philippines that, out of all Asia, this is the first fintech lending facility that ADB has done with anybody. And that gives me pride to say that, obviously, that was based on our very thorough due diligence,” Khan noted during a media interview following the partnership launch at the SMX Convention Center in Taguig City on Friday.

Fuse Financing Inc. serves as the lending arm of GCash, the mobile payments platform of Globe Fintech Innovations Inc., enabling MSMEs to access digital credit services more efficiently.

MSMEs, which account for roughly 99.5% of employment and contribute about 35% to national output, form a critical backbone of the Philippine economy. The new ADB credit facility aims to push more enterprises toward growth by providing sustained, digitally supported access to capital.

Beyond financing, ADB will provide USD125,000 (₱7.3 million) in technical assistance to help Fuse design specialized financial products and deliver digital and financial literacy programs for women entrepreneurs.

As part of the initiative, Mastercard is also contributing through its Impact Fund, extending support for outreach efforts and enhancing financial inclusion among underserved communities.

Khan highlighted that the facility will allow Fuse to channel more capital into MSMEs nationwide, with 50% earmarked for businesses located in provinces with poverty levels above the national average. He added that digital lending plays a key role in improving transparency and tracking how funds are deployed.

Fuse Financing Inc. President and CEO Tony Isidro expressed confidence in the partnership’s ability to uplift entrepreneurs and stimulate local economic activity.

“That’s a testament on how serious we are in really making an impact on MSME space,” Isidro said, noting that while the rollout timelines may vary, the entire program is “built on clear metrics” and supported by ADB’s extensive experience.

The collaborative initiative marks a major step in expanding tech‑enabled financing in the Philippines, positioning digital lending as a powerful tool for empowering MSMEs and reducing poverty. (via PNA)

via Industry Daily Observer