52764 - FC ABS

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Summary of Investment Information

Project Number

52764

Company Name

First Circle SPV

Date SPI Disclosed

May 8, 2026

Country

Philippines

Region

East Asia and the Pacific

Projected Board Date

Jun 1, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

May 10, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Sector

Virtual lending, P2P, crowdfunding

Project Description

The proposed investment involves participating in the senior and/or mezzanine tranches of an off-balance-sheet asset-backed security (ABS) to be issued by a Special Purpose Vehicle (the SPV or the Borrower). The SPV will be established to pool a diversified, collateralized pool of SME receivables originated by First Circle (FC or the Company), as the originator and servicer, a wholly owned subsidiary of Carabao Capital Global Pte Ltd, the Sponsor. The investment is a financing package of up to US$110 million comprising: i) an IFC A loan of up to US$20 million in the senior tranche, ii) an IFC C loan of up to US$10 million in the mezzanine tranche, and iii) mobilization of up to US$80 million to expand access to credit for underserved micro, small, and medium enterprises (MSMEs) in the Philippines. Commitments are envisaged to be executed in multiple tranches, with IFC’s participation in the first tranche of up to US$15 million across both senior and mezzanine tranches.

The proposed investment is anticipated to be structured as an up to four-year securitization facility, with a roll-over option available at the end of each of the first three years. The investment will be made via a newly formed special purpose vehicle (SPV) in the Philippines, subject to legal and regulatory due diligence. This investment would mark IFC's first securitization in the Philippines' market, contributing to the deepening and development of domestic capital and funding products.

Associated Advisory Engagement

This investment is not associated with any advisory services.

Sponsor / Cost / Location

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Quasi-Equity	Loans to SME Borrowers
Straight Senior Loan	Loans to SME Borrowers
Syndications	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Project Outcome: Stakeholders Effect - - Increased access to, and quality of, finance for SMEs: The most significant expected project-level outcome is increased access to finance for SMEs, including key economic sectors like agriculture, healthcare, tourism, construction, and value-added manufacturing that will help create jobs in the Philippines. IFC’s investment will enable a pioneering securitization structure backed by SME receivables to provide longer term, tailored capital for productive uses such as working capital, inventory, and growth investments Contribution to Market Creation: Competitiveness: Beyond the project level outcomes, IFC anticipates that this Project will promote greater competitiveness in the securitization market by encouraging NBFCs and fintechs to leverage on innovative securitization structures to attract funding for underserved segments like SMEs.

Financial Additionality: (i) Innovative Financing Structure: Securitization is still nascent in the Philippines. The proposed 1-year rolling, off balance sheet structure will be tailored to FC’s funding needs, easing balance sheet pressure, supporting prudent leverage, and enabling scalable long-term funding for SME lending. The structure offers 1-year rolling financing for up to 3-year financing (1+1+1), extending FC’s average funding tenor of approximately 2 years, which is more stable compared to majority 1 year financing locally available. By channeling loans into a bankruptcy-remote vehicle, investors, including IFC, gain exposure to an asset pool with an enhanced credit profile, strengthening investors’ confidence; (ii) Resource Mobilization: IFC’s participation will demonstrate the viability and risk return profile of such securitizations, mobilizing up to US$80M from local and institutional investors, diversifying FC’s investor base, and contributing to the development of a Philippine SME backed securities market.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs	number		Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	$		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed project involves participating in the senior and/or mezzanine tranches of an off-balance-sheet asset-backed security (ABS) to be issued by a Special Purpose Vehicle (the SPV or the Borrower). The SPV will be established to pool a diversified, collateralized pool of SME receivables originated by First Circle (FC or the Company), as the originator and servicer. The project is expected to have low to medium low environmental and social (E&S) risks and is therefore categorized as an FI-2 project according to IFC's Environmental and Social Sustainability Policy. The project will not support any coal-related projects or higher-risk transactions that involve: (a) involuntary resettlement; (b) potential adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, or cultural heritage; (d) risk of significant retrenchment; or (e) significant occupational health and safety risks. The applicable E&S performance requirements for the project will be the IFC Exclusion List and relevant national E&S laws and regulations, and exclusion of hydro power projects. The Company’s own human resources practices are broadly in line with IFC Performance Standard 2 on Labor and Working Conditions.

The Company is an existing client of IFC, and has developed an ESMS and nominated E&S roles, including an E&S manager. The ESMS includes E&S policies, E&S requirements that it applies (including an exclusion list, categorisation, E&S screening, review and monitoring process). The Company will be required to maintain proper capacity for implementing the ESMS, including training staff, and continuing implementing the ESMS such that only eligible MSME loans would be accepted into the pool of loans for the securitisation. The Company’s HR policies are broadly aligned with PS 2 on labor and working conditions in its own operations.

Contacts

For Inquiries About the Project, Contact

Carabao Capital Global Pte. Ltd.
Josh O'Donnell
VP of Finance

josh@firstcircle.com
60 Paya Lebar Road, #07-54, Paya Lebar Square, Singapore, 409051
https://www.firstcircle.ph

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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