Thailand’s Muangthai Capital (MTC) has secured a $60 million loan from FinDev Canada to expand access to formal financing for women-owned micro, small and medium-sized enterprises (WMSMEs), particularly in rural communities.
FinDev Canada said it will direct 100% of the loan proceeds toward MTC’s efforts to increase access to formal financial services for underserved women-owned businesses.
The loan brings total funding raised by MTC to $260 million through a financing package that includes a $200 million syndicated facility co-led by the Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC), FinDev Canada said.
The syndicate also includes commercial and state-owned banks and an asset management firm.
The transaction marks FinDev Canada’s first direct loan to a Thai non-bank financial institution. It also supports Canada’s economic engagement with Thailand, its second-largest trading partner within the Association of Southeast Asian Nations.
“An investment in women is an investment in us all. Canada is empowering women entrepreneurs by expanding access to financing for MSMEs and strengthening the resources needed to succeed,” said Randeep Sarai, Secretary of State (International Development).
SMEs contribute about 35% of Thailand’s gross domestic product, according to the Organisation for Economic Co-operation and Development.
However, many businesses struggle to obtain formal credit because of limited credit histories and insufficient collateral, leaving some reliant on informal lending and constraining their growth.
MTC operates across all 77 provinces in Thailand, providing secured and unsecured financing to individuals and small businesses.
Its products include vehicle title and land title deed loans, personal loans, nano finance, motorcycle hire purchase, and buy-now-pay-later services.
MTC chief executive Parithad Patcharachai said the partnership would expand the lender’s capacity to serve underserved customers, particularly in rural communities.
FinDev Canada provides debt, equity, blended finance and advisory services in emerging markets, focusing on infrastructure, agribusiness and financial services. Its investments seek to generate development impact alongside financial returns.
