Thailand’s largest non-bank financial institution Muangthai Capital ( MTC ) has secured a US$200 million loan to support the development of women-owned micro, small and medium-sized enterprises ( WMSMEs ) in rural Thailand.

The financing package, announced on December 11, was led by the Asian Development Bank ( ADB ) and Sumitomo Mitsui Banking Corporation ( SMBC ) acting as the mandated lead arrangers and bookrunners. It comprised US$75 million from the ADB’s ordinary capital resources and US$125 million from a consortium of six B-lenders, including SMBC, State Bank of India ( Tokyo ), SBI ( Mauritius ), Chang Hwa Commercial Bank, First Commercial Bank and ILX Fund.

The deal represents MTC’s inaugural offshore loan syndication. “We see this transaction as a major milestone that strengthens our position in the international market,” says Parithad Petampai, MTC’s CEO. “This project will help us expand financial inclusion to an estimated 200,000 WMSMEs, especially outside Bangkok, enhancing our capacity to serve these entrepreneurs and advancing our commitment to gender equality in both our operations and workforce.”

The financing package, notes Anouj Mehta, the ADB’s country director for Thailand, demonstrates the ADB’s role in catalyzing private capital for significant development impact. “By anchoring this transaction, the ADB,” he points out, “has mobilized substantial commercial co-financing that directly empowers women entrepreneurs, addresses critical financial inclusion gaps and strengthens the foundation for sustainable and equitable economic growth across rural Thailand.”

Thailand’s micro, small and medium-sized enterprises ( MSMEs ), according to ADB, form the backbone of the economy, providing the majority of employment and generating over one-third of the national gross domestic product. Women-owned or women-led businesses, which comprise more than half of all MSMEs, are disproportionately affected by financing constraints.

Despite their importance, WMSMEs, the ADB shares, face a financing gap of about US$68 billion, approximately 66% of the total national financing gap for MSMEs.

The loan proceeds will directly benefit WMSMEs in rural Thailand by improving their access to finance and integrating them into the formal financial system.

MTC specializes in loans to individual customers, with a focus on serving MSMEs and informal self-employed individuals. It plays a key role in expanding financial inclusion in Thailand, particularly in the informal sector in rural areas, with its dynamic business model and extensive branch network.