Manila, Philippines – The Asian Development Bank (ADB) has signed a USD$30m loan agreement with Fuse Financing Inc. aimed at expanding access to credit for micro, small, and medium-sized enterprises (MSMEs) in the Philippines through a digital lending platform.
According to ADB, the financing is intended to support underserved and unserved segments of the population, particularly MSMEs operating in rural and hard-to-reach areas. The initiative also places a focus on increasing access to finance for women-owned enterprises, which continue to face constraints such as stricter lending terms and limited access to tailored financial products.
“Supporting MSMEs to make them part of the broader value chain is key to achieving sustainable and inclusive growth in the country,” said ADB Philippines country director Andrew Jeffries.
“MSMEs are an important segment of the local economy—employing over 60% of Filipino workers and contributing more than a third to the country’s gross domestic product. We are pleased to support this initiative that will boost MSMEs’ contribution to economic growth,” added Andrew.
Meanwhile, Fuse, the lending subsidiary of GCash, said it will allocate 60% of the loan proceeds to women-owned MSMEs and extend financing to enterprises located in provinces with high poverty incidence. The company will also provide non-collateralised loans to small business owners, including farmers, market vendors, sari-sari store operators, and first-time borrowers, to help them establish a credit history.
In addition to the loan, ADB will provide up to USD$125,000 in technical assistance to support the development of tailored financial products and the delivery of financial and digital literacy training for women, particularly those with limited formal education.
Separately, the ‘Mastercard Impact Fund’ will contribute USD$150,000 in performance-based incentives to support Fuse in scaling its formal MSME portfolio, including initiatives targeting new women entrepreneurs.
Fuse is wholly owned by Mynt, also known as Globe Fintech Innovations Inc., which is controlled by Ayala Corporation through Globe Capital Ventures and AC Ventures Holding. On the other hand, ADB is a multilateral development bank established in 1966, with 69 member countries, including 50 from Asia and the Pacific. It works with governments and partners across the region to support development initiatives through financing, technical assistance, and partnerships.
