DCM MTC Bond (IFC-49396)

Countries
  • Thailand
Geographic location where the impacts of the investment may be experienced.
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 10, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Muangthai Capital Public Company Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 10, 2025

Disclosed by Bank Sep 3, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Project entails an IFC’s investment of up to US$150 million to be committed in tranches, the first of which will be a privately placed social bond of up to US$50 million (the Social Bond) issued by Muangthai Capital Public Company Limited (MTC), a leading publicly listed non-bank financial institution (NBFI) in Thailand, to support MTC expand its lending program to women micro-entrepreneurs, which helps ease social issues such as inequality, employment, and particularly access to finance for the base of the pyramid population in Thailand. The proposed social bonds will follow the Social Bond Principles of the International Capital Market Association (ICMA). The Social Bond proceeds will be earmarked to women microentrepreneurs in Thailand.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project presents limited to no environmental and social (E&S) risks and impacts and is categorized as Category FI-3 in accordance with IFC's Environmental and Social Sustainability Policy. The proceeds will not be used to support coal-related activities or higher risk business activities that may include involuntary resettlement (including physical and economic displacement), risk of adverse impacts on Indigenous People, significant risks to or impacts on the environment, community health and safety, biodiversity or cultural heritage, risk of significant retrenchment or significant occupational health and safety risks to employees. Applicable performance requirements will include IFC Exclusion List and national E&S laws and regulations.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed investment entails an investment of up to US$150 million senior debt financing to MTC to be committed in tranches, the first of which will be a privately placed social bond of up to US$50 million. The investment will be complemented by a capacity building program to support MTC’s sustainable growth strategy. 

Financial Intermediary
A financial intermediary is a 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 Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Muangthai Capital Public Company Limited - MTC is a leading title loan provider in Thailand, with the largest loan portfolio, customer base, and branch network nationwide. Mr. Chuchat Petaumpai and Mrs. Daonapa Petampai are the major shareholders of MTC and hold 33.96% and 33.49% with a combined stake of approximately 70%. Also, Thai NDVR Company, 100% owned by the Stock Exchange of Thailand (SET) holds a 7.67% stake in MTC. The remaining shareholding of 24.88% is held by retail and institutional investors.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Muangthai Capital Public Company Limited
Parithad Petampai
Deputy Managing Director
+66 2 483 8888
parithad.p@muangthaicap.com
332/1 Jaransanitwong Road | Bangplad | Bangplad | Bangkok | Thailand | 10700
https://investor.muangthaicap.com/en/company-info/mtc-overview

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works