Asian Development Bank Launches P1.75 Billion Facility for Philippine MSMEs
The Asian Development Bank (ADB), based in Manila, has announced a significant financial initiative aimed at bolstering micro, small, and medium enterprises (MSMEs) in the Philippines. A loan facility totaling P1.75 billion has been extended to Fuse Financing Inc., with a particular emphasis on supporting women-owned businesses. This move aligns with the government's ongoing efforts to enhance access to financing for this critical sector of the economy.
Historic Fintech Partnership and Strategic Goals
In a media interview on Friday, February 6, 2026, following the partnership launch at the SMX Convention Center in Taguig City, ADB director for Private Sector Financial Institutions Suhail Khan expressed pride in this collaboration. He highlighted that this marks the first fintech lending facility ADB has undertaken with any entity across Asia, underscoring the Philippines' pioneering role in digital finance. Khan attributed this achievement to rigorous due diligence processes.
Fuse Financing Inc., the lending arm of GCash under Globe Fintech Innovations Inc., will utilize the funds to provide capital to MSMEs. Notably, 50 percent of the allocation is designated for enterprises located in provinces where poverty rates exceed the national average. The program is designed as a revolving fund to assist business owners in expanding their operations and alleviating poverty.
Comprehensive Support Beyond Financial Aid
Beyond the substantial loan, ADB is committing US$125,000 (approximately P7.3 million) in technical assistance. This funding will aid Fuse in developing customized financial products and delivering financial and digital literacy training programs specifically tailored for women entrepreneurs. Additionally, Mastercard has joined the initiative, offering Impact Fund support to help Fuse effectively reach its target beneficiaries and advance financial inclusion across the country.
Khan emphasized the advantages of digital lending, noting its potential to improve transparency and enable better tracking of fund usage. He described the partnership as a mutually beneficial arrangement for all involved parties, fostering economic growth and social development.
Optimism and Measured Impact in the MSME Sector
MSMEs play a vital role in the Philippine economy, contributing around 35 percent of the nation's output and accounting for roughly 99.5 percent of total employment. Tony Isidro, president and chief executive officer of Fuse Financing Inc., expressed optimism about the partnership's potential impact on this sector. While he declined to provide specific projections on the speed of fund deployment, Isidro assured that the initiative is grounded in clear metrics and leverages ADB's extensive experience.
"That's a testament to how serious we are in really making an impact on the MSME space," Isidro stated, reinforcing the commitment to driving meaningful change through this collaborative effort.
