Muangthai Capital Public Company Ltd.

Summary of anticipated development impacts

MARKET DEVELOPMENT

Improve access to finance for rural MSMEs: MSMEs account for 99.6% of enterprises, 72% of employment, and 35% of GDP in Thailand, yet face an estimated financing gap of USD 41B. MSMEs in rural areas are particularly underserved due to limited credit histories and collateral constraints. MTC is well positioned to reach rural customers, with most of its customers located in rural areas and a network of nearly 9,000 branches across all 77 provinces. By allocating 100% of FinDev Canada’s proceeds to rural WMSMEs, the transaction is expected to expand access to formal financing for underserved borrowers and support the growth of MSMEs in Thailand.

GENDER EQUALITY

Improve access to finance for WMSMEs

By allocating 100% of FinDev Canada’s proceeds to rural WMSMEs, the transaction is expected to increase access to formal financing for women entrepreneurs and support gender-inclusive economic growth.

GENDER EQUALITY

Improve access to finance for WMSMEs: Women own or lead approximately 60% of the MSMEs in Thailand but account for an estimated 90% of the MSME financing gap. By allocating 100% of FinDev Canada’s proceeds to rural WMSMEs, the transaction is expected to increase access to formal financing for women entrepreneurs and support gender-inclusive economic growth.
2X Alignment: This transaction is 2X-aligned under the Ownership & Entrepreneurship criterion, with women representing 50% of MTC’s active founders, and the Portfolio criterion, with 100% of FinDev Canada’s proceeds dedicated to WMSMEs.