Asialink Finance Secures P125M Funding to Boost Credit Line

Financing company Asialink Finance Corporation has secured a P125-million credit line from South Korea's Hana Bank Global to boost its lending capabilities for small businesses in the Philippines, especially those who have no access to traditional banking services. 

“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,” Eillen Mangubat, president and COO of Asialink, said. 

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As for Hana Bank, its newly formed alliance with Asialink “is a testament to our commitment to enhancing Filipino lives through increased funding and sustainable growth.”

The latest capital follows the series of credit support that the company has been receiving from at least four Taiwanese financial institutions, on top of its domestic sources. Asialink did not disclose the total amount. But from what we know, among those investors are Taiwan’s Cathay United Bank—which extended a P300-million credit facility to the company in April—as well as CTBC Bank and Yuanta Savings Bank. 

Last February, Malaysian private equity firm Creador acquired an 18-percent stake after investing P4 billion in Asialink. The funding brought the lender's total capital to P12 billion, which was said to be allotted for the expansion of its loan portfolio to support the growth of micro, small, and medium enterprises (MSMEs).

Asialink aims to disburse a total of P24 billion in loans—twice the amount it released to new borrowers in 2023—while doubling its customer base of 100,000 MSMEs. The lender is also targeting to go public in the next four years with a capital of P30 billion, 20 percent of which will be floated in the market. According to Asialink, these are aligned with its goal of strengthening its position as one of the leading homegrown financing companies.

Founded in 1997 in the Philippines, Asialink caters to financial needs of businesses and individuals alike through its network of independent loan consultants and more than 80 branches nationwide.

Hana Bank, headquartered in Seoul, is a subsidiary of holding company Hana Financial Group. It claims to have provided the widest range of foreign exchange products in South Korea since its establishment in 1967.