Muangthai Capital ( MTC ), a top Thai non-bank financial institution ( NBFI ), has issued a landmark social bond amounting to S$129 million ( US$99.8 million ), representing the first publicly offered social bond in Singapore dollars by a non-bank financial institution ( NBFI ) on the back of a guarantee provided by Credit Guarantee & Investment Facility ( CGIF ), a trust fund of the Asian Development Bank ( ADB ).

The dual-tranche transaction, announced on October 14, sets a new benchmark for sustainable financing in the debt capital markets of the Association of Southeast Asian Nations region. The issuance was comprised of a three-year bond amounting to S$64 million, with a final pricing of 2.15% and a five-year bond amounting to S$65 million, which was priced at 2.28%. Rated AA by S&P Global Ratings, the bonds will be listed on the Singapore Exchange.

The offering garnered a strong investor demand and was more than three times oversubscribed during the bookbuilding process. Proceeds from the issuance will be deployed under MTC’s social bond framework, which aims to finance projects that drive positive social impact.

Through this, MTC seeks to expand its reach to support financial inclusion and inclusive economic growth in Thailand. Funds will be channelled to enhance financial access for underserved groups, who may face limited access to credit, including smallholder farmers, micro-enterprises, such as women business owners and self-employed women, and day labourers and employees.

Standard Chartered was the sole global coordinator and sole bookrunner for the transaction.

MTC specializes primarily in vehicle title loans. Established in 1992 and listed on the Stock Exchange of Thailand in 2014, it holds more than one-third of the market share with a net loan portfolio of 168 billion baht ( US$5.2 billion ) as of June 2025.

The company operates the most extensive branch network among Thailand’s NBFI’s, with over 8,400 branches and 16,000 employees serving more than 3.5 million clients nationwide. It primarily caters to low- to middle-income individuals, aiming to enhance access to credit and promote financial inclusion across all 77 provinces of Thailand.

Earlier in July this year, MTC also raised social bond in the US dollar market amounting to US$350 million. The five-year senior unsecured amortizing social notes were priced at par and carried an interest rate of 7.55% per annum. The deal was launched in Reg S/144A format to broaden its investor base. It previously issued a four-year US$335 million social bond in Reg S format in September 2024.

Commenting on MTC’s latest deal, Hongwei Wang, CGIF’s CEO, says: “By mobilizing investor capital towards social bond, CGIF underscores its commitment in deepening regional thematic bond markets, while advancing access to opportunity for underserved communities.”

Parithad Petampai, MTC’s CEO, adds: “This milestone not only underscores our commitment to advancing financial inclusion and supporting underserved communities, but also marks a key step in establishing our presence in new regional capital markets”.