MANILA, Philippines — Philippine fintech lender First Circle has secured a ₱300 million credit facility from Taiwan-based Cathay United Bank, marking the company’s first financing partnership with a Taiwanese bank and reinforcing growing support for sustainable and inclusive SME financing in the Philippines.

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The facility was successfully finalized in April 2026 between First Circle and Cathay United Bank. The Bangko Sentral ng Pilipinas (BSP) has been encouraging financial institutions to integrate sustainable finance principles and responsible lending practices into their operations to support long-term economic resilience and financial inclusion.

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The transaction comes amid growing adoption of environmental, social, and governance (ESG) initiatives across the Philippine financial sector. Despite their role in the economy, many SMEs continue to face limited access to formal financing, particularly those underserved by traditional banks.

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Through the partnership, Cathay United Bank expands its participation in the Philippine market by supporting a fintech-focused SME lender with a growing nationwide presence. The Taiwanese bank is among the largest financial institutions in Taiwan and has been strengthening its regional footprint across Asia through strategic financing partnerships and sustainable banking initiatives.

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For First Circle, the facility further strengthens its funding base as demand for accessible SME financing continues to increase in the Philippines. Since launching operations, the company has focused on providing digital-first financing solutions designed to simplify and speed up business lending for entrepreneurs that may face challenges accessing traditional bank credit.

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Beyond working capital and business loans, First Circle has also been expanding financing solutions that support SMEs pursuing renewable energy adoption and sustainability initiatives, including its Solar Financing product designed to help businesses transition to clean energy through accessible and flexible funding options. The initiative aligns with the growing adoption of sustainable business practices among Philippine enterprises while helping SMEs manage long-term operational costs through renewable energy investments.

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“Cathay United’s financing enables First Circle to continue expanding access to credit to high quality SMEs who are left behind by the banking system. We look forward to expanding the relationship,” said Josh O’Donnell of First Circle.

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The ₱300 million facility is expected to support First Circle’s continued expansion while helping broaden financing access for Philippine MSMEs across different industries. SMEs remain a key pillar of the Philippine economy, accounting for the majority of businesses nationwide and employing millions of Filipinos.

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The transaction also highlights strengthening economic ties between Taiwan and the Philippines, particularly in areas involving financial services, digital innovation, and SME development. Regional financial institutions have increasingly explored opportunities in the Philippine market amid rising demand for digital lending and alternative financing solutions.

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As ESG adoption continues to expand across the banking industry, financial institutions are placing greater emphasis on financing models that support inclusive economic growth, responsible lending, and long-term sustainability. Partnerships between regional banks and alternative lenders are expected to play an increasingly important role in improving capital access for underserved businesses while supporting broader economic development goals.

Since its inception in 2015, Cathay United Bank (CUB) – Manila Branch has been a frontrunner in ESG. As one of the first banks in the Philippines to introduce a Sustainability-Linked Loan in 2022, it has since diversified its green and social portfolio with products like Sustainable Time Deposits. Alongside its commitment to sustainability, the Manila Branch offers a comprehensive suite of one-stop banking solutions—ranging from trade and corporate finance to foreign exchange and remittances—empowering local corporate clients to achieve both business growth and environmental goals.

CUB was established in 1975 as a subsidiary of Cathay Financial Holdings (CFH) and aims to be a premier financial institution in the Asia-Pacific. With an extensive network of over 233 branches and offices across 11 markets—including a significant presence in the ASEAN region—CUB continues to deepen its international footprint. CFH’s robust ecosystem also includes Cathay Life Insurance, Cathay Century Insurance, Cathay Securities, Cathay Securities Investment Trust, and Cathay Venture.