News Column

TMB RSF

July 25, 2014



Date SPI disclosed : July 23, 2014 Projected board date : August 29, 2014 Project Status : Active Project number : 35414 Region : East Asia and the Pacific Company name : TMB Bank PCL Country : Thailand Sector : O-AA - Commercial Banking - General Department : Global Industry, Financial Markets Environmental category : FI2 Status : Pend FAP Project Description : The Project ( TMB RSF ) consists on an unfunded Risk Sharing Facility ( RSF ) of US$70 million to be provided to TMB Bank Public Ltd. ( TMB ) with a 7-year maturity in order to support the Bank to further extend loans to the SME sector in Thailand. Project Sponsor and Major Shareholders of Project Company : TMB was established in Thailand in 1957 as Thai Military Bank to offer financial services to members of the Thai military. In 1973, TMB became a full commercial bank and expanded its customer base to include the general public. The Bank was listed on the Stock Exchange of Thailand (SET) in 1983 and transformed into a public limited company in 1994. Thai Military Bank Plc., DBS Thai Danu Bank Plc. and the Industrial Finance Corporation of Thailand merged into TMB Bank Plc. in 2004. The Ministry of Finance of Thailand and ING Bank N.V. ( ING Bank ) are the major shareholders of TMB holding 26.02% and 25.12%, respectively. Total Project Cost and Amount and Nature of IFC%s Investment : The proposed investment is an unfunded RSF of US$70 million to TMB with a 7-year maturity. Location of Project and Description of Site : TMB is headquartered in Bangkok, and has a network of over 458 branches throughout Thailand. Expected Development Impact - Support to the SME sector: Increasing access to finance for SMEs an underserved segment in Thailand. - Generate a demonstration effect: The Project is expected to create a demonstration effect for other banks to serve the SME segment more actively, further enhancing IFC%s developmental impact in Thailand. IFC%s Expected Role and Additionality - Providing Risk Mitigation: IFC will provide TMB with the appropriate risk protection it requires to further grow its SME portfolio, a segment in which there is still ample space in this market. - Fostering a Strategic Relationship: IFC would add value to TMB by structuring a tailored made risk management product that addresses the Bank%s needs. Accordingly, IFC would support the growth of an existing client, fostering the relationship with a strategic partner in the Country. Environmental & Social Categorization Rationale The Project involves an unfunded risk-sharing facility (RSF) to support TMB Bank to further extend loans to small and medium enterprises (SMEs) and has been categorized as FI-2 in accordance with IFC s Environmental and Social Review Procedure. TMB s current SME lending represents over 36 percent of its total loan portfolio. Such SMEs typically have revenue less than US$15.5 million and are mostly in the manufacturing and commerce sectors. Activities supporte

Project completion date : 2015-07-31 12:00:00

Major organization : TMB BANK PUBLIC COMPANY LIMITED

Address : 3000 Phahonyothin Road, Chompon, Chatuchak Bangkok 10900 Thailand Website : http://www.tmbbank.com Attn : Mr. Samuel Cheung (Head of SME Product & Portfolio Management)



Country :Thailand

Financier : International Finance Corporation (IFC),

Financier address : Financier : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 United States Website : http://www1.ifc.org Tel : (202) 473-3800 Fax : (202) 974-4384


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Source: TendersInfo (India)


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