IFC may extend up to $150m in financing to Thailand’s TMB Bank

Bangkok, Thailand. Photo: Hanny Naibaho/Unsplash

The International Finance Corporation (IFC), a member of the World Bank Group has proposed to subscribe up to $150 million in US dollar-denominated bonds to be issued by Bangkok-based TMB Bank Public Company Limited (TMB).

IFC will be the sole subscriber in the seven-year US dollar-denominated SME/green bonds to be issued by TMB through a private placement, the development institution said in a disclosure.

The funding will be used by the Thai bank to finance small and medium enterprises and green projects, IFC said.

“The project will support the bank’s ongoing efforts to increase its lending portfolio to SMEs, an important sector that drives economic growth and employment, and to promote climate-smart and other environmentally sustainable investments in the country,” it said in its disclosure.

Bangkok-based TMB is engaged in commercial banking and is the seventh largest bank in Thailand in terms of assets, amounting to about Baht 829.7 billion ($25.9 billion) and net loans of about Baht 623.6 billion ($19.5 billion) as of April 2018.

The financing by IFC is also aimed at supporting “climate-smart and environmentally friendly projects”.

“The green tranche of the bond will the first bond issuance aligned with the Global Bond Principles in Thailand, which will result in the creation of a new asset class in the country,” IFC said.

TMB, which is listed on the Stock Exchange of Thailand, has long been a client of IFC. In 2012, IFC had extended it a $100-million loan to support flood-affected small and medium exporters.

Also in 2017, IFC and TMB Vientiane Branch of TMB Bank partnered to provide a $9.1-million equivalent Lao Kip financing to ACLEDA Bank Lao Ltd, in Laos for SME support.

In 2007, TMB formed a business partnership with ING Bank, a leading financial institution from the Netherlands, which is also the largest shareholder of TMB with an ownership of 30.8 percent.

TMB Bank was until recently led by chairman Rungson Sriworasat who resigned from the bank on June. The new chairman is yet to be announced.

TMB is currently operating under two segments, commercial banking and retail banking, and has subsidiaries including Phayathai Asset Management Co., Ltd., Designee for ETA Contract Ltd. and TMB Asset Management Co., Ltd.

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

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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.