The International Finance Corporation (IFC) has invested US$50 million in a gender-inclusive social bond issued by Muangthai Capital Public Company (MTC), a listed non-banking financial institution (NBFIs) in Thailand, with the aim of expanding financial inclusion in the country for women micro-entrepreneurs, making it the first NBFI to issue a gender-inclusive social bond in the country

Proceeds from the social bond will be dedicated to loans for women-owned and -led micro-entrepreneurs, especially those with limited access to affordable formal financing.

The IFC’s investment in the social bond follows a gender finance baseline study to quantify opportunities for MTC to continue providing financial services to women entrepreneurs. The study was conducted by IFC and supported by the government of Australia under the Women’s Economic Empowerment, Financing and Inclusion Platform.

The IFC, the private finance arm of the World Bank, will also advise MTC on capacity building in areas such as customer protection practices and the development of a social bond framework, which will support the company’s sustainable growth strategy focused on providing affordable access to finance to underserved people in Thailand.

Stock Exchange of Thailand (SET)-listed MTC, the leading motorcycle title loan provider in Thailand, offers a wide range of services to its customers, including vehicle title, land title and personal loans, new motorcycle hire and purchase loans, and nanofinance. These loans are primarily aimed at productive purposes, serving more than three million borrowers, mostly farmers, microentrepreneurs, street vendors and informal workers.

MTC, rated BBB+ by the local credit agency TRIS, has a market capitalization exceeding US$2.5 billion. It is a consistent issuer in the capital market and is part of SET’s Thailand Sustainability Investment Index List.

“By seizing this important opportunity, we can broaden the scope of financial accessibility, enabling us to better support people across Thai society,” says Parithad Petampai, MTC’s deputy managing director. “Our goal is to be a leading model in microfinance, fostering the creation of a truly equitable society.”