ADB, Partners Sign $200m Loan to Boost Women-Owned Small Businesses in Thailand

The deal reflects ADB’s growing role in mobilizing private capital to support development priorities across Asia.

The Asian Development Bank (ADB) and Muangthai Capital (MTC) have signed a landmark $200 million loan agreement to expand financing for women-owned micro, small, and medium-sized enterprises (WMSMEs) across rural Thailand. The initiative aims to deepen financial inclusion, reduce gender disparities in access to finance, and support sustainable economic growth.

The financing package is jointly arranged by ADB and Sumitomo Mitsui Banking Corporation (SMBC), serving as mandated lead arrangers and bookrunners. It consists of:

• $75 million from ADB’s ordinary capital resources

• $125 million from six B-lenders:

  • SMBC

  • State Bank of India (Tokyo)

  • SBI (Mauritius)

  • Chang Hwa Commercial Bank

  • First Commercial Bank

  • ILX Fund

The deal reflects ADB’s growing role in mobilizing private capital to support development priorities across Asia.

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Targeting a Massive Gender Financing Gap

Thailand’s MSMEs are the backbone of the national economy:

• They account for the majority of employment

• They contribute over one-third of the country’s GDP

More than half of these enterprises are women-owned or women-led, yet they face persistent barriers to accessing credit. The financing gap for WMSMEs stands at $68 billion, representing 66% of the entire MSME financing gap in the country.

By channeling new capital into rural areas, this loan aims to:

• Increase lending to underserved women entrepreneurs

• Reduce reliance on informal moneylenders

• Bring more WMSMEs into the formal financial system

• Improve financial literacy and business resilience

ADB Country Director for Thailand Anouj Mehta emphasized the bank’s catalytic role:

“This pivotal financing package demonstrates ADB’s role in mobilizing private capital for significant development impact. It empowers women entrepreneurs, addresses financial inclusion gaps, and strengthens the foundation for sustainable and equitable growth.”

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Expanding Reach to 200,000 Women Entrepreneurs

MTC’s CEO Parithad Petampai noted that the loan marks the company’s first international loan syndication, made possible by ADB’s involvement:

“This transaction strengthens our position in the international market and will help expand financial inclusion to an estimated 200,000 WMSMEs, especially outside Bangkok. It supports our commitment to gender equality in both service delivery and our workforce.”

The funding will support MTC’s efforts to:

• Provide accessible, affordable credit for women in rural and semi-urban areas

• Design tailored financial products for small-scale entrepreneurs

• Boost income-generating activities in agriculture, retail, and services

• Promote digital finance solutions for underserved populations

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MTC’s Role in Thailand’s Financial Inclusion Landscape

MTC is Thailand’s largest nonbank financial institution, specializing in small, unsecured loans to individuals, microentrepreneurs and informal workers. Its strengths include:

• A strong branch network reaching deep into rural areas

• A business model geared toward underserved populations

• A proven track record in expanding credit access for MSMEs

By partnering with ADB, MTC will scale its impact and accelerate efforts to reduce poverty, promote gender equality, and stimulate local economic development.

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A Major Step Toward Inclusive and Gender-Responsive Growth

The ADB-led financing package is expected to have far-reaching economic and social benefits:

• Increased financial resilience for women entrepreneurs

• Greater economic participation by women in rural regions

• Reduction of inequality between Bangkok and the rest of Thailand

• Strengthening of Thailand’s MSME ecosystem through formal financial integration

As Asia faces rising economic uncertainty, targeted financial inclusion for women-led businesses remains a critical driver of sustainable development.