MOBILIST supports successful IPO of Thai Credit Bank
The UK government’s MOBILIST programme is advancing inclusive economic growth in Thailand through supporting the successful listing of a Thai bank.
The UK government’s MOBILIST programme is advancing inclusive economic growth and local capital market development in Thailand through its catalytic participation in the successful listing of Thai Credit Bank (Thai Credit) on the Stock Exchange of Thailand (SET).
Thai Credit shares began trading on the SET on 9 February 2024 after an initial public offering (IPO) supported by the UK’s Foreign Commonwealth and Development Office (FCDO) through MOBILIST and other key investors, the International Finance Corporation (IFC) and the Asian Development Bank (ADB) as key investors. Thai credit listed 254,124,200 shares at THB 29 per share, bringing the total value of the IPO to THB 7,370 million (just over USD 200 million).
Thai Credit is the only licensed bank in Thailand that focuses on nano-finance, micro-finance, and loans to Micro, Small and Medium Enterprises (MSMEs) and the first financial institution serving this segment to list on the Thai stock market. MSMEs play a critical role in the Thai economy but often struggle to access the financing from traditional banks they need to grow. Thai Credit will use the proceeds from the IPO to expand its lending to MSMEs, including women-owned businesses and businesses in rural areas. It is listed in the SET’s Financials/Banking sector and trades under the symbol “CREDIT”.
Mark Gooding, British Ambassador to Thailand, says: “Thai Credit’s listing will enable the bank to expand its lending to businesses and individuals that are underserved by the banking sector, to not only foster financial inclusion but also support economic opportunities and job creation. The UK is proud to support this IPO and its contribution to mobilising capital at scale toward attaining the Sustainable Development Goals (SDGs).”
Thai Credit’s IPO is also set to generate a broader developmental impact by demonstrating how public markets can be utilised to allow development finance institutions to exit their investments. MOBILIST and other investors are buying shares currently held by a private equity investment vehicle in which DEG, the German development finance institution (DFI), is a shareholder.
Ross Ferguson, FCDO MOBILIST Programme Lead, says: “MOBILIST’s participation in this IPO sets an important precedent for using catalytic capital to facilitate exit-mobilisation for DFIs by using listed vehicles. This model allows DFIs to successfully exit their private equity investments, unlocking capital for new investment while providing institutional and retail investors access to assets to build portfolios that support the SDGs.”
Thai Credit’s listing can set a replicable precedent for similar firms serving MSMEs in other geographies or DFIs holding similar assets, noting that MSME lending is a key development finance gap.
Jane Yuan Xu, Country Manager for Thailand and Myanmar at IFC, says: “Dedicated financing for MSMEs, including WMSMEs, is critical for an inclusive and sustainable economy. Accordingly, IFC’s participation as a cornerstone investor in the IPO will help foster investor confidence while empowering women, promoting SME growth, and catalysing job creation. By supporting the underserved segments, the funding will contribute to the country’s post-pandemic recovery efforts and increased resilience.”
Mr Winyou Chaiyawan, Chief Executive Officer at Thai Credit says: “Thai Credit’s successful listing reinforces investor confidence despite volatile economic and investment circumstances. The listing will also support our plans to use digital technologies to enhance customer satisfaction and corporate productivity as we expand our market share in core business segments. The bank will continue to focus on asset quality and look for strategic partners to enhance our product offering and customer experience and reach customers effectively.”
Background
About MOBILIST
A flagship UK government programme, MOBILIST supports investment solutions that help deliver the climate transition and the United Nation’s Global Goals in developing economies. MOBILIST focuses on mobilising institutional capital to spur new scalable and replicable financial products. MOBILIST invests capital, delivers technical assistance, conducts research and builds partnerships to catalyse investment in new listed products.
MOBILIST is a key part of the British Investment Partnerships (BIP) offer. BIP is a UK initiative which brings together the UK’s economic development and investment offer, and combines development finance, capital market mobilisation and export finance with the best of UK technical expertise, and a partnerships approach.