The Asian Development Bank (ADB) and Muangthai Capital (MTC) have signed a $200 million loan agreement to support women-owned micro, small, and medium-sized enterprises (WMSMEs) in rural Thailand. The financing package, led by ADB and Sumitomo Mitsui Banking Corporation (SMBC) as the mandated lead arrangers and bookrunners, includes $75 million from ADB’s ordinary capital resources and $125 million from a consortium of six B-lenders, including SMBC, State Bank of India (Tokyo branch), SBI (Mauritius), Chang Hwa Commercial Bank, First Commercial Bank, and ILX Fund. The loan aims to enhance financial inclusion and empower women entrepreneurs outside urban centers.
ADB Country Director for Thailand, Anouj Mehta, emphasized that the transaction demonstrates ADB’s ability to catalyze private capital for development impact. By anchoring the loan, ADB mobilized substantial commercial co-financing that directly supports women entrepreneurs, addresses critical financial inclusion gaps, and strengthens sustainable economic growth in rural areas.
Thailand’s MSMEs are a key driver of the national economy, providing most employment and generating over one-third of the GDP. Women-led or women-owned businesses account for more than half of these enterprises but face disproportionate financing challenges. WMSMEs experience a $68 billion financing gap, representing about 66% of the total MSME financing shortfall. The loan will improve access to finance for WMSMEs in rural Thailand and integrate them further into the formal financial system.
MTC Chief Executive Officer Parithad Petampai highlighted the significance of ADB’s support in mobilizing international commercial banking partners for this inaugural syndicated loan. The project is expected to benefit an estimated 200,000 women-led MSMEs outside Bangkok, advancing gender equality and expanding financial inclusion in rural areas.
MTC is Thailand’s largest nonbank financial institution focused on serving MSMEs and informal self-employed individuals. Its extensive branch network and business model enable it to reach underserved rural communities, playing a pivotal role in enhancing financial access for informal sectors.
ADB, a leading multilateral development bank established in 1966, supports inclusive, resilient, and sustainable growth across Asia and the Pacific. With 69 member countries, ADB leverages innovative financial instruments and strategic partnerships to address complex development challenges, transform lives, build quality infrastructure, and promote environmental sustainability.
