IFC mulls $100m loan, cross-currency swap for CVC Capital-backed Thai NBFC

International Finance Corporation (IFC), a member of the World Bank Group, is proposing to extend a three-year loan of up to $100 million and a cross-currency swap to Ngern Tid Lor (NTL), a non-banking financial institution in Thailand.

IFC’s proposed investment is aimed to support NTL to grow its local currency financing to micro and small enterprises, according to its disclosure. The cross-currency swap is likely to help NTL hedge the currency and interest rate risks.

NTL offers vehicle title loans, hire purchase and insurance brokerage to the underserved micro and small enterprises and individual customers across the country. It had total assets of $1.6 billion and gross loan portfolio of $1.5 billion as of September 30, 2020.

The project is expected to contribute towards addressing the financing gap on micro and small enterprises in the country, particularly in the less developed areas of Thailand where NTL has a strong presence, IFC said.

“IFC is expected to play a catalytic role to enable NTL to access to international financial markets amidst the impact of the COVID pandemic and the perceived risk of non-bank financial institutions sector. This will contribute to diversifying the company’s sources of funding and support it to strengthen financial discipline and improve resilience,” it added.

NTL is headquartered in Bangkok with over 1,000 branches across Thailand. It is expected that the proposed loan will be used to support the micro and small enterprises across the country.

NTL is a regulated non-deposit-taking NBFI in Thailand and is currently 50 per cent owned by the Bank of Ayudhya (BAY), and 44 per cent owned by a fund managed by CVC Capital Partners. BAY is 76.8 per cent owned by MUFG Bank in Japan.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.