MTC and ADB Sign USD 200 Million Loan to Support Women-Owned MSMEs in Rural Thailand
Muangthai Capital Public Company Limited (MTC), the Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC) signed a USD 200 million financing agreement intended to support the development of women-owned micro, small and medium-sized enterprises (WMSMEs) in rural Thailand.
Parithad Petampai, Chief Executive Officer of MTC, said:
“Cooperation among global financial institutions expands opportunities, narrows the financing gap, strengthens the grassroots economy and reinforces gender equality, supporting sustainable growth in Thai society.”
MTC and ADB signed the financing agreement to fund women-led MSMEs in rural Thailand, strengthen economic opportunities and improve equitable access to financial services.
ADB and SMBC acted as mandated lead arrangers and bookrunners. The package comprised a USD 75 million loan from ADB's ordinary capital resources and USD 125 million from a syndicate of six international financial institutions: SMBC, State Bank of India (Tokyo Branch), SBI (Mauritius), Chang Hwa Commercial Bank, First Commercial Bank and ILX Fund.
“This financing reflects ADB's important role in delivering tangible development results by strengthening women entrepreneurs, narrowing the financial-access gap and laying the foundations for stable, sustainable and inclusive economic growth in rural Thailand.”
MSMEs are central to Thailand's economy, serving as a major source of employment and generating more than one-third of gross domestic product. Women-owned or women-led MSMEs account for more than half of all MSMEs but face a financing gap estimated at approximately USD 68 billion, or around 66% of Thailand's total MSME financing gap.
The financing is intended to directly support women-led MSMEs in rural Thailand, increase access to funding and facilitate greater participation in the formal economy and financial system.
“We are very pleased to receive ADB's support and its important role in this financing. The transaction is a significant milestone that strengthens MTC's position in international markets and enables us to expand financial inclusion to an estimated 200,000 women-owned MSMEs, particularly in rural areas outside Bangkok. It will strengthen our service capacity and reinforce our commitment to gender equality in both operations and our workforce.”
MTC is one of Thailand's large non-bank financial institutions, specialising in lending to individual customers with a focus on MSMEs and informal self-employed workers. Through its business model and nationwide branch network, MTC supports financial inclusion, particularly in rural and informal sectors.
ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. It works with members and partners to address complex challenges through innovative financial instruments and strategic partnerships. Established in 1966, ADB has 69 members, 50 from the region.
