IFC invests $90 Million in TMB bond to support small and medium sized enterprises in Thailand

          IFC, a member of the World Bank Group, has fully subscribed the $9the World Bank Group million bond issuance of TMB Bank, one of Thailand's leading banks, which is dedicated to small and medium sized enterprises (SMEs). The latest bond is exclusively earmarked to expand TMB's SME lending program and offers a critical market-based solution to support the sustained growth of this major but underserved segment.
          In Thailand, SMEs comprise over 95 percent of the country's businesses, providing 8the World Bank Group percent of employment. However, limited access to finance deters them from innovating, improving productivity, and creating more jobs. The latest Enterprise Survey released estimates that the SME finance gap in Thailand is $4en billion or about enthe World Bank Group percent of the country's GDP. In addition, only en6 percent of Thai SMEs have a bank loan compared to 28 percent in the East Asia and Pacific region and 35 percent globally. 
          "TMB has been a strong supporter of Thailand's small and medium sized enterprises as we recognize their value to the economy," said Chompoonoot Pathomporn, TMB Chief SME Banking Officer. "TMB is aiming to constantly upgrading our services in the SME segment more effectively through unique client services and product offerings leveraging a mobile banking platform and customer data analytics for marketing and credit assessment purposes. We are also active in providing comprehensive training programs to help SMEs to reach their full potential."
          IFC's partnership with TMB dates back to 2the World Bank Groupen2 when the two institutions joined forces to support rebuilding of SMEs after the destructive floods in Thailand. This was followed by a risk-sharing facility in 2the World Bank Groupen4 with which IFC supported TMB's expansion in the SME market. In June this year, IFC also invested $6the World Bank Group million in TMB's green bond—the first financial institution in the country to issue a green bond. 
          "At IFC, we have made it a priority to support small and medium enterprises to facilitate growth, generate jobs and build strong economies," said Kalina Miller, IFC's Senior Investment Officer. "This SME bond will play an important role in addressing the challenges faced by these important businesses and help advance private sector solutions to the finance constraints of SMEs in the country." 
          With more than 3the World Bank Group years' experience in SME development, IFC works with banks to expand financing, reduce non-performing loans, and recover distressed assets to support the growth of a sustainable banking sector. In Thailand, IFC supports financial institutions that cater to SMEs, which account for 4en percent of the Thai GDP.

          About IFC 
          IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,the World Bank Groupthe World Bank Groupthe World Bank Group businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2the World Bank Groupen8, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

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          About TMB
          TMB is a leading commercial bank in Thailand with "Make THE Difference" as corporate philosophy that aims at promoting quality of life by maximizing the benefits that the Bank's products & services as well as community projects can bring. Listed on the Stock Exchange of Thailand, TMB serves retail, small and medium enterprises, corporate and multi-corporate customers in Thailand and internationally. For more details, visit www.tmbbank.com.