MUL is the largest shareholder in BMUL (44.0%). MUL is listed company on Tokyo Stock Exchange and playing significant role in lease & finance sector as one of Mitsubishi UFJ Financial Group, the largest financial conglomerate in Japan. The other main shareholders are Bangkok Bank Group (34.0%), Bangkok BTMU (10.0%), Toyota Tsusho Thailand Co., Ltd. (6.0%).

The total size of the Facility is estimated to be $70 million. Under the proposed Facility, BMUL would be responsible for generating a portfolio of EE leases that satisfy certain eligibility criteria to be set by BMUL and IFC. IFC’s participation would involve sharing the risk of that lease portfolio, which would include support from the Clean Technology Fund ("CTF").

40.49 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	40.49
Loan
Equity

* These investment figures are indicative

BMUL is headquartered in Bangkok, Thailand and operates huge number of transactions with more than 570 customers throughout the country.

The following development benefits are expected:IFC is contributing to the development and diversification of the financial sector by assisting in the development of new markets and product lines with significant growth potential. By sharing credit risk in the EE/RE/ESCO lease portfolio, IFC provides comfort to and reduces risks taken by financial institutions, especially those entering into such new markets in Thailand for the first time. IFC’s project complements BMUL’s strategy to support the EE, RE and ESCO sectors and will enable BMUL to manage risk and grow its assets at a faster pace than it would on its own.Environmental and social benefits: Thailand is heavily dependent on energy as an input and has one of the highest electricity rates in the region. The project will contribute to increasing efficiency in industry and reduce operating costs. In addition, the project will also contribute to pollution reduction by increasing usage of more efficient technologies with fewer harmful side-effects.

With more than a decade of experience in supporting EE financing globally, IFC is in the best position to help local financial institutions combat climate change. The Facility in which risk mitigation will be provided by IFC and CTF will help BMUL gain better understanding of EE financing market in Thailand and build BMUL’s EE financing capacity. The Facility will be combined with an efficient GHG emission monitoring process based on IFC’s know-how and experience from past projects.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the client''s environmental and social management capacity and the potential environmental and social risks of the activities to be supported by this facility and determined that the Applicable Performance Requirements are IFC FI Exclusion List, the applicable national social and environmental laws and regulations, and IFC Performance Standards.

Based on the review, the project will be required to:

• Finalize the development of a social and environmental management system, prior to commitment to the satisfaction of IFC
• Identify responsible, qualified persons to manage and implement the SEMS
• Commit to implement the SEMS, to ensure that activities supported by IFC financing are in compliance with the Applicable Performance Requirements
• Apply the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
• Submit a periodic report to IFC as per a format to be provided by IFC