MICROCAPITAL BRIEF: TMB Bank Sells IFC $90m in Bonds to Support SMEs in Thailand

The International Finance Corporation (IFC), a member of the World Bank Group, recently purchased USD 90 million in bonds from Thailand’s TMB Bank to support its lending to small and medium-sized enterprises (SMEs). This follows a separate investment in June 2018 between the same parties in the amount of USD 60 million via “green” bonds.

Founded in 1957 as the Thai Military Bank, TMB is a commercial bank based in Bangkok. As of 2018, Thailand’s Ministry of Finance and Netherlands-based ING Bank each hold 25-percent stakes in the bank. It had total assets of THB 844 billion (USD 25.9 billion), a gross loan portfolio of THB 619 billion (USD 19 billion) and customer deposits of THB 611 billion (USD 18.8 billion) as of 2017.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2017, IFC reports total assets of USD 92.3 billion, and it has 184 member countries.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses: (1) International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2018, the World Bank Group disbursed funds totaling USD 46 billion.

By Michelle Fleming, Research Associate

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/D89DBE6C2EAC9C448525836600256977

TMB homepage
https://www.tmbbank.com

TMB financial information
https://media.tmbbank.com//uploads/ir_fininfo_annual/file/media/161_file_en.pdf?180308052455

IFC homepage
https://www.ifc.org

World Bank homepage
https://www.worldbank.org

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