IFC Invests USD 50 Million in Gender-Inclusive Social Bond Issued by MTC
The International Finance Corporation (IFC) invested USD 50 million in a gender-inclusive social bond issued by Muangthai Capital Public Company Limited (MTC) to promote equitable access to finance. The financing is intended to strengthen women-owned or women-led microenterprises and expand opportunities across genders.
On 22 August 2024, MTC and IFC—a member of the World Bank Group that mobilises finance to advance private-sector development in emerging markets—announced the USD 50 million social bond. The proceeds are intended for loans to women-owned or women-led microenterprises, particularly those with limited access to formal financial services. The gender-inclusive social bond seeks to improve competitiveness without gender discrimination and support sustainable livelihoods and quality of life.
“We have always prioritised financial equality and equitable services. This important opportunity will allow us to broaden access to finance for more people in Thai society and serve as a model retail lender that genuinely supports an inclusive society.”
Parithad Petampai, Deputy Managing Director of MTC, said IFC's investment followed a gender-finance baseline study, and IFC would advise MTC on customer protection and the development of a social bond framework. This work was supported by the Australian Government through the Women's Economic Empowerment, Financing and Inclusion Platform (WEE-FIP), together with customer-protection practices that support MTC's sustainable-growth strategy and provision of fair-priced finance to underserved groups.
“By increasing access to financial services for women-owned or women-led small businesses in Thailand, we can help unlock their full potential and use it to generate economic growth, contributing to a stronger model of growth and development that helps Thailand achieve high-income status by 2037.”
Riccardo Puliti, IFC Regional Vice President for Asia and the Pacific, said the financing would help broaden opportunities for women-led businesses.
MTC stated that it was Thailand's first retail lender among non-bank financial institutions to support credit access for women-owned or women-led businesses in this way. The company continues to pursue equitable, internationally benchmarked services in cooperation with institutions including IFC, the Japan International Cooperation Agency (JICA) and Germany's KfW DEG.
MTC cited its ‘Excellent’ five-star corporate-governance rating, A-level SET ESG Rating and AA MSCI rating as evidence of its commitment to responsible microfinance. The company remains open to mobilising resources with other domestic and international financial institutions to strengthen the economy, maintain environmental stability and improve quality of life in Thai society.
