Asialink secures funding from Korean bank

MANILA, Philippines — Asialink Finance Corp. has secured a P125-million credit line from Korea’s Hana Bank Global to shore up resources that small borrowers can tap into for their expansion plans.

Asialink said this is the company’s first financial tie-up with a bank from South Korea.

“This breakthrough collaboration with a South Korean bank marks a vital step toward strengthening further Asialink’s diversification of funding sources for re-lending to the largely unbanked business sector,” Asialink president and COO Eillen Mangubat said.

Francis Koo, general m anager of KEB Hana Bank Manila Site, said the agreement between the two financial institutions “is a testament to our commitment to enhancing Filipino lives through increased funding and sustainable growth.”

Aside from a growing list of local funders, Asialink has been receiving capital from four Taiwanese financial institutions consistently.

In April, Asialink announced that it has secured a P300-million credit line facility from Taiwan’s Cathay United Bank. This was the third Taiwanese bank to extend credit support to Asialink, with other two from CTBC Bank Philippines and Yuanta Savings Bank.

Creador, a Southeast Asian private equity firm, has invested P4 billion in Asialink in February.

The investment gives Creador an 18 percent stake in Asialink and a seat on its board of directors.

Asialink earlier said it would use the funds to expand its lending capacity and support the growth of SMEs, the backbone of the economy and a major generator of jobs all over the country.

Aside from funding Asialink’s expansion across the country, Creador also said it would help improve the lender’s operational efficiency, introduce international banking partners and leverage its expertise from investing in multiple NBFCs to support business innovation and automation.

Asialink released over P12 billion in loans to over 24,000 new borrowers in 2023.