Asialink secures ₱500-million sustainability-linked loan from Taiwan bank
At A Glance
- Asialink Finance Corp. (AFC) has secured a ₱500 million sustainability-linked social facility from Taiwan-based Cathay United Bank (CUB), expanding financing to micro, small, and medium enterprises (MSMEs) in rural areas, unbanked individuals, and women-owned enterprises across the country.
Asialink Finance Corp. (AFC) has secured a ₱500 million sustainability-linked social facility from Taiwan-based Cathay United Bank (CUB), expanding financing to micro, small, and medium enterprises (MSMEs) in rural areas, unbanked individuals, and women-owned enterprises across the country.
This partnership aims to strengthen AFC’s capacity to provide financing to underserved communities, the firms said in a May 28 statement.
“These sectors serve as vital engines of the Philippine economy, encouraging increased employment and fostering local resilience. Through this partnership, AFC is helping close that gap by delivering responsive financing where it is needed most,” AFC said.
According to AFC, the facility is specifically structured to align the nonbank with measurable social performance targets, ensuring that lending growth is directly tied to real progress in financial inclusion.
A sustainability-linked social facility is a loan whose interest rate depends on whether a company meets agreed social and environmental goals. Borrowing costs may decrease if the targets are achieved, but may increase if the company fails to meet them.
This initiative comes against the backdrop of MSMEs navigating evolving market conditions, which have heightened the need for flexible and accessible funding solutions to sustain their operations and growth.
The deal underscores AFC’s continued commitment to advancing responsible financing solutions across the Philippines, the firm said. (Derco Rosal)