IFC Invests $50M in Thailand’s First Gender-Inclusive Social Bond to Support Women Microentrepreneurs

The proceeds from this social bond will be allocated to providing loans specifically for women-owned or women-led microenterprises, particularly those with limited access to affordable formal financing.

To enhance financial inclusion for women microentrepreneurs in Thailand, the International Finance Corporation (IFC) has announced a $50 million investment in a gender-inclusive social bond issued by Muangthai Capital Public Company Limited (MTC). MTC, one of Thailand’s leading non-banking financial institutions (NBFIs), is the first NBFI in the country to issue such a bond.

The proceeds from this social bond will be allocated to providing loans specifically for women-owned or women-led microenterprises, particularly those with limited access to affordable formal financing. This initiative is part of MTC's commitment to expanding financial accessibility and supporting the broader goal of creating a more equitable society 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," stated Parithad Petampai, Deputy Managing Director of MTC.

The IFC's investment follows a gender-finance baseline study conducted to identify opportunities for MTC to continue offering financial services to women entrepreneurs. The study was supported by the Australian government under the Women's Economic Empowerment, Financing, and Inclusion Platform (WEE-FIP). Additionally, IFC will provide advisory services to MTC on customer protection practices and the development of a social bond framework, aligning with MTC’s sustainable growth strategy to provide affordable finance to underserved populations 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.

This investment continues IFC’s longstanding support for micro, small, and medium-sized enterprises (MSMEs) in Thailand. In 2021, IFC invested $100 million in Thai NBFI Ngern Tidlor to expand lending opportunities for MSMEs. In February 2024, IFC participated in the initial public offering of Thai Credit Bank Public Company Limited, aiming to increase access to finance for small businesses in Thailand, particularly those owned or led by women.