DCM TMB SMEGreen (IFC-41118)

Countries
  • Thailand
Where the impacts of the investment may be experienced.
Specific Location
Bangkok
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 11, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
TMB BANK PUBLIC COMPANY LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 12, 2021

Disclosed by Bank Jun 5, 2018


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Project Description

According to the IFC website, the project entails an IFC’s subscription of up to US$150 million in USD denominated bonds to be issued by TMB Bank Public Company Ltd. (TMB or the Bank) to finance SMEs and eligible “green” projects (the Project). TMB is the seventh largest bank in Thailand, both in terms of assets and loans, and has been an IFC client since 2012. The Project will support the Bank’s ongoing efforts to increase its lending portfolio to SMEs, an important sector that drives economic growth and employment, and to promote climate-smart and other environmentally sustainable investments in the country.

 

Investment Description
Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

TMB is the seventh largest bank in Thailand, both in terms of assets and loans, and has been an IFC client since 2012. The Project will support the Bank’s ongoing efforts to increase its lending portfolio to SMEs, an important sector that drives economic growth and employment, and to promote climate-smart and other environmentally sustainable investments in the country.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - ING Groep N.V. (ING) Investor -
Better World Green PCL Parent Company Energy owns Ava Grand Energy Co Ltd Client Energy
Better World Green PCL Parent Company Energy owns Recovery House Co Ltd Client Energy
Electric Power Dvlp Co Ltd Parent Company Energy owns Gulf Power Generation Client Energy
Gulf Energy Parent Company Energy owns Sriracha GSRC CCGT Power Plant (2.65GW) IPP Client Energy
Gulf Energy Development Parent Company Energy owns Chonburi Gas-Fired Thermal Power Plant (2500MW) Client Energy
Gulf Energy Development PCL Parent Company Energy owns Gulf Src Co Ltd Client Energy
Mitsui & Co Parent Company Energy owns Chonburi Gas-Fired Thermal Power Plant (2500MW) Client Energy
Mitsui & Co Parent Company Energy owns Sriracha GSRC CCGT Power Plant (2.65GW) IPP Client Energy
TMB Bank Investor Finance invests in Ava Grand Energy Co Ltd Client Energy
TMB Bank Investor Finance invests in Better World Green PCL Parent Company Energy
TMB Bank Investor Finance invests in Chonburi Gas-Fired Thermal Power Plant (2500MW) Client Energy
TMB Bank Investor Finance invests in CK Power PCL Parent Company Energy
TMB Bank Investor Finance invests in Electric Power Dvlp Co Ltd Parent Company Energy
TMB Bank Investor Finance invests in Gulf Energy Parent Company Energy
TMB Bank Investor Finance invests in Gulf Energy Development Parent Company Energy
TMB Bank Investor Finance invests in Gulf Energy Development PCL Parent Company Energy
TMB Bank Investor Finance invests in Gulf PD Parent Company Energy
TMB Bank Investor Finance invests in Gulf Power Generation Client Energy
TMB Bank Investor Finance invests in Gulf Src Co Ltd Client Energy
TMB Bank Investor Finance invests in IRPC PCL Parent Company Mining
TMB Bank Investor Finance invests in Lalin Plc Parent Company Construction
TMB Bank Investor Finance invests in Mitsui & Co Parent Company Energy
TMB Bank Investor Finance invests in Nava Nakorn Electricity Generating Co Ltd Parent Company Energy
TMB Bank Investor Finance invests in Recovery House Co Ltd Client Energy
TMB Bank Investor Finance invests in SC Asset Corp PCL Parent Company Industry and Trade
TMB Bank Investor Finance invests in Sriracha GSRC CCGT Power Plant (2.65GW) IPP Client Energy

Contact Information

TMB Bank Public Company Limited
Mr. Chalermchai Paisithmongkol
Head of Balance Sheet Management and/or Head of Central Treasury
+66 2299 1111
chalermchai.pai@tmbbank.com
3000 Phahonyothin Road, Chompon, Chatuchak, Bangkok 10900 THAILAND
http://www.tmbbank.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/