Small businesses will have better access to finance thanks to IFC’s first investment in a non-bank financial institution (NBFI) in Thailand, Ngern Tid Lor Public Company Limited (TIDLOR). IFC’s latest investment aims to support a resilient recovery by fostering business growth, job creation and promoting financial inclusion.

IFC’s financial package of up to $ 100 million (approximately THB 3,000 million) will enable TIDLOR to increase its lending to micro, small and medium-sized enterprises (MSMEs nationwide. IFC will also mobilize international investors to help TIDLOR access diversified financing and help the company improve its credit risk management framework.

MSMEs represent 86 percent of Thailand’s workforce and 45 percent of the country’s gross domestic product (GDP). Yet even before COVID-19, MSMEs in Thailand had an estimated funding gap of $ 41 billion, representing 10.3% of the country’s GDP. With the pandemic, they face several challenges, including canceled orders, reduced sales, disrupted supply chains and a lack of working capital. In addition, lending to MSMEs by banks has been tighter due to higher non-performing loan (NPL) ratios.

?? In the face of an ongoing crisis, IFC’s investment will enable TIDLOR ?? a subsidiary of Bank of Ayudhya Public Company Limited (BAY) ?? to strengthen our balance sheet as we execute our strategy of promoting inclusion financial with a digital and data-driven approach, ?? said Piyasak Ukritnukun, Managing Director of Ngern Tid Lor Public Company Limited.

NBFIs that focus on lending remain small scale, accounting for less than five percent of the total assets of the Thai financial system. This is mainly due to the fact that NBFIs do not accept deposits, lack diversified sources of finance, and target informal workers, individual entrepreneurs and MSMEs who do not have any collateral for fixed assets and are perceived to be too weak. high risk.

“In line with IFC’s strategic priorities in Thailand, IFC’s investment will help increase accessible, convenient and affordable financial services for MSMEs, which is essential to promote employment and sustainable development.” said Jane Yuan Xu, IFC Country Director for Thailand and Myanmar. IFC’s support will also inspire the confidence of potential international investors while having a catalytic effect on competitors, accelerating the economic recovery in Thailand. Xu added.

IFC combines investment and advice to foster sustainable economic growth in the Thai private sector. In June 2021, IFC’s committed portfolio in Thailand is $ 875 million.

About IFC

IFC “a member of the World Bank Group” is the world’s largest private sector-focused development institution in emerging markets. We work in over 100 countries, using our capital, expertise and influence to create markets and opportunities in developing countries. In FY2021, IFC committed a record $ 31.5 billion to private businesses and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information visit www.ifc.org.

About TIDLOR
Ngern Tid Lor Public Company Limited (?? TIDLOR ??), the owner of the Ngern Tid Lor brand, is the leader in providing vehicle title loans to the under-banked customer segment and the largest non-branch office. life insurance broker in Thailand. With more than 1,200 branches nationwide, TIDLOR provides an accessible, fair, transparent and accountable source of funding for the underbanked Thai population, providing them with better choices in times of financial hardship. All of TIDLOR®’s operations are guided by the principle ?? In everything we do, we strive to empower people and enrich lives. We believe that access to fair, transparent and responsible financial services is everyone’s right. This is reflected in its range of products and services which create opportunities for its clients who often do not have access to formal financing. For more information visit www.tidlor.com.