FinDev Canada provides a USD 60 million loan to Muangthai Capital to advance gender equality and private sector investment in Thailand

This loan marks FinDev Canada's first direct investment in a Thai non-bank financial institution and aims to channel 100% of the proceeds towards WMSMEs. The focus on rural women-owned businesses addresses a critical gap, as many such enterprises in Thailand face challenges in accessing formal credit due to limited credit history or insufficient collateral, often forcing reliance on informal lending.

Muangthai Capital, with 90% of its customer base in rural areas and an established branch network, is positioned to help disburse these funds effectively. The partnership with FinDev Canada, alongside the larger syndicated facility, suggests a coordinated effort by development finance institutions and private banks to leverage existing infrastructure for financial inclusion.

The initiative highlights the role of financial institutions in supporting economic growth by targeting a specific underserved segment. MSMEs contribute approximately 35% of Thailand's GDP and are significant employers. Expanding their access to formal credit is presented as a way to strengthen financial inclusion and overall economic resilience, aligning with broader development goals.