Bangkok, August 26, 2024—To expand financial inclusion in Thailand for women microentrepreneurs, IFC today announced a $50 million investment in a gender-inclusive social bond issued by Muangthai Capital Public Company Limited (MTC), one of the leading listed non-banking financial institutions (NBFIs) in the country.
Proceeds from the social bond will be dedicated to loans for women-owned/led micro entrepreneurs, especially those with limited access to affordable formal financing. MTC is the first NBFI to issue a gender-inclusive social bond in Thailand.
"We have always prioritized financial equality and equal access to services. By seizing this important opportunity, we can broaden the scope of financial accessibility, enabling us to better support people across Thai society. Our goal is to be a leading model in microfinance, fostering the creation of a truly equitable society," said Parithad Petampai, Deputy Managing Director of MTC.
IFC's investment in the social bond follows a gender-finance baseline study to quantify opportunities for MTC to continue providing financial services to women entrepreneurs. The study was conducted by IFC and supported by the government of Australia under the Women's Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP). IFC will also advise MTC on capacity building in areas such as customer protection practices and the development of a social bond framework, which will support MTC's sustainable growth strategy focused on providing affordable access to finance to underserved people in Thailand.
"By increasing access to finance for small businesses owned or led by women, we can contribute to unlocking and harnessing their full potential to participate in growing the economy, leading to a more resilient growth model which will help Thailand achieve its goals of becoming a high-income country by 2037," said Riccardo Puliti, IFC's Regional Vice President for Asia and the Pacific.
IFC has been at the forefront of supporting micro, small, and medium-sized enterprises (MSMEs) in Thailand through landmark investments. In 2021, IFC invested $100 million in Thai NBFI Ngern Tidlor to increase lending opportunities for MSMEs. In February 2024, IFC was an investor in an initial public offering of Thai Credit Bank Public Company Limited to help increase access to finance for small businesses in Thailand, especially women-owned or led firms.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Muangthai Capital
MTC is the No.1 motorcycle title loan provider in Thailand, boasting the largest loan portfolio, customer base, and branch network nationwide, with 32 years of history in the country. Listed on the Stock Exchange of Thailand in 2014, MTC currently has a market cap exceeding US$2.5 billion. The company offers a wide range of services to its customers, including vehicle title loans, land title loans, personal loans, new motorcycle hire purchase loans, and nano finance. These loans are primarily aimed at productive purposes, serving more than three million borrowers, mostly farmers, microentrepreneurs, street vendors, and informal workers. Rated BBB+ by the local credit agency TRIS, MTC is a consistent issuer in the capital market and is part of SET's Thailand Sustainability Investment Index List.
About WEE-FIP
The Women's Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP) is supported by the government of Australia and focuses on identifying, targeting, and addressing key private sector gender and inclusion gaps and bolstering the evidence base for broader action by companies, financial institutions, and key government stakeholders in the Asia-Pacific region. WEE-FIP aims to create new gender financing investment opportunities for private sector investors and development finance institutions that deliver measurable economic empowerment of women, broad-based and inclusive growth, and enhance gender equality and inclusion.
