The International Finance Corporation (IFC) has announced a substantial $50 million investment in a new gender-inclusive social bond from Muangthai Capital Public Company Limited (MTC). This makes MTC the first non-banking financial institution (NBFI) in Thailand to issue such a bond.
The funding will be directed towards providing loans for women-owned and women-led micro businesses, particularly those that struggle to access affordable financing. This move is a major step towards improving financial equality and accessibility in Thailand.
Parithad Petampai, Deputy Managing Director of MTC, highlighted the company’s commitment to financial fairness. He said, “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.”
Through this investment, MTC aims to set a benchmark in the microfinance sector, expanding financial opportunities and promoting a more inclusive society.
Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, stressed the broader economic benefits of the initiative. He said, “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.”
The IFC’s investment follows a gender-finance baseline study conducted with the Australian government’s Women’s Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP). This study identified key areas where MTC can further support women entrepreneurs with tailored financial services.