IFC invests in Gender-Inclusive Social Bond Issued by MTC Aiming to Promote Economic Equality and Provide Women in Thailand with Access to Finance

International Finance Corporation (IFC), a member of the World Bank Group made an investment in social bond worth USD 50 million issued by Muangthai Capital Public Company Limited. The bond aims to empower women-owned small businesses in Thailand by improving their access to finance, fostering economic equality, and promoting opportunities for all genders to stand on their own. MTC remains committed to being a financial services provider that addresses social inequality across all dimensions.

On August 22, 2024, IFC, invested USD 50 million in social bonds issued by MTC to provide financing to small businesses owned or led by women, particularly those facing challenges in accessing formal financial services. The Gender-Inclusive Social Bond is designed to enhance competitiveness regardless of gender and promote sustainable development and improved quality of life.

"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 Mr. Parithad Petampai, Deputy Managing Director.

Additionally, the company has developed a social framework to expand financial opportunities for women and reduce gender inequality, based on guidance from IFC and supported by the Australian government under the Women’s Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP). This includes implementing customer protection practices that will support MTC’s sustainable growth strategy, focusing on providing fair access to finance for underserved groups and ensuring inclusive and sustainable national development.

"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.

MTC is the first non-bank financial institution (NBFI) in Thailand that issued a gender-inclusive social bond to support access to credit for women-owned or women-led businesses, promoting non-discrimination across all gender identities. The company continues to focus on delivering high-quality services at international standards through collaborations with global financial institutions like IFC, Japan International Cooperation Agency (JICA) and Deutsche Investitions- und Entwicklungsgesellschaft (KfW DEG). These partnerships aim to enhance and develop loan processes throughout MTC's operations, improve the quality of life for society, and protect the interests and meet the expectations of all stakeholders. The company has received an "Excellent" (5-star) rating for corporate governance and an "A" ESG (Environmental, Social, and Governance) Rating from the Stock Exchange of Thailand, as well as an "AA" MSCI Index rating, reflecting its leadership in world-class microfinance.

MTC is also committed to collaborating with financial institutions, both domestic and international, to continue mobilizing financial resources. These efforts will lay a strong foundation, enhance economic resilience, maintain environmental stability, and sustainably improve the quality of life for Thai society across all dimensions.