Bangkok, June 14, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide its first Thai baht loan in the financial sector to Siam Industrial Credit Public Company, Ltd. or SICCO, a leading finance company The transaction supports IFC’s strategy to promote consumer finance and provide local currency financing options to local companies that can benefit from IFC’s global expertise.
The 1.4 billion baht (appx. $35 million) three year term loan facility will help SICCO to diversify funding sources, achieve a closer matching of its assets and liabilities, and grow its automobile finance activities, especially in the provinces.
“This transaction is a critical step forward in IFC’s support for Thailand’s domestic financial sector,” said IFC Country Manager Michael Higgins. “We are able to offer financing in local currency to match the assets of SICCO and reduce foreign exchange risks. This will help SICCO expand its consumer finance business beyond Bangkok, providing improved access to credit for borrowers across Thailand.”
SICCO is an affiliate of Siam Commercial Bank. The company is listed on the Stock Exchange of Thailand. SICCO is one of the leading automobile finance providers in Thailand. The company is well positioned to grow its business in different segments of this rapidly evolving market.
IFC’s strategy for Thailand’s financial sector focuses on financial sector reform through investments and technical assistance to financial institutions. IFC also seeks to support the further development of new financial institutions as well market infrastructure necessary for the continued modernization of the financial sector in Thailand. The development of a strong consumer finance sector is an important component of this strategy.
The mission of IFC (
www.ifc.org)
is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
