Citi and DEG Close PHP1.5B Loan for OnePuhunan

In Short

• Citi and Germany’s DEG closed a co-financing loan worth more than PHP1.5 billion for OnePuhunan in the Philippines.
• Citi is providing over PHP300 million directly and coordinated over PHP1.2 billion in additional funding.
• The money will expand OnePuhunan’s microfinance portfolio, with a focus on lending to women micro-entrepreneurs.

What Happened

Citi and DEG, a German development finance institution, announced the closing of a co-financing loan of more than PHP1.5 billion for OnePuhunan, also known as CreditAccess Philippines Financing Company.

Co-financing means two lenders share the same deal, so the borrower gets a larger pool of capital on similar terms. In this case, Citi said it provided more than PHP300 million and acted as coordinator for the wider financing partnership, mobilising the rest from DEG.

The announcement also noted that this is DEG’s first debt transaction in the Philippines financial inclusion sector. Debt in this context is a loan that must be repaid with interest, not equity funding where investors buy ownership.

The loan proceeds are earmarked for OnePuhunan’s microfinance portfolio. Microfinance refers to small loans and basic financial services designed for people and very small businesses that may not qualify for traditional bank credit.

Why It Matters

More capital for microfinance lenders can translate into more working capital for micro-entrepreneurs, especially women who often face tougher credit access barriers. Working capital is the day-to-day money needed to buy inventory, restock, and keep a business running.

For fintech and lending operators across Africa, the structure is a reminder that large, blended funding rounds still depend on credible local execution and partners that can aggregate capital. It also shows how development finance institutions can use debt facilities to support financial inclusion without taking equity stakes.

If OnePuhunan grows the loan book responsibly, the facility could support higher business productivity and more stable household income for borrowers. The key risk to watch is portfolio quality, meaning whether borrowers can repay on time as the lender scales.