To expand financial inclusion in Thailand for women microentrepreneurs, the International Finance Corporation (IFC) has on Monday 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, IFC said in a statement.

It is noted that 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.

It is noted that 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.

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets.

The organization works 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.

MTC is the leading 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, the firm currently has a market cap exceeding $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.

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