The Bank is listed on the Stock Exchange of Thailand and owned 33% by GE Capital, who became a strategic partner of the Bank in January 2007, and 25% by the Ratanarak Group. The remaining 42% is owned by over 20,000 retail and institutional investors.

GE Capital is the financial services unit of General Electric, a multinational conglomerate headquartered in the United States of America. General Electric is listed on the New York Stock Exchange.

The Ratanarak Group is one of leading family groups in Thailand. The group is a conglomerate with holdings in a number of Thai-based companies including BAY, Siam City Cement, Bangkok Broadcasting & Television Company and Tonson Property.

The proposed investment is a loan of up to $200 million to BAY.

200.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	200.0
Equity

* These investment figures are indicative

BAY is headquartered in Bangkok and provides a full range of banking services to both its commercial and individual customers through 600 branches nationwide. The SME loans will be extended by BAY within the country.

Support the economic recovery: The worst flooding in Thailand in half a century is expected to reduce the country''s economic growth by 1-1.5%. The Project will support the country''s disaster responses by providing source of emergency liquidity.

Financial sectors deepening: The Project will enable a local bank to access foreign currency funding and provide a level playing field with foreign banks that have the benefit of parent funding.

Increase financing to sub-borrowers: The project will contribute to an increase of BAY''s loan portfolio.

IFC''s support through this liquidity facility will signal that IFC is keen to work with BAY in its efforts to support SMEs in Thailand.
This intervention will signal to the market that (i) BAY is able to raise funds through an international borrower in time of domestic economic stress, and (ii) that the bank remains one of the leading SME financiers in Thailand.

This project has been classified as a Category FI project according to IFC’s Environmental and Social (E&S) Review Procedure. IFC has analyzed the FI''s portfolio activities and has determined the applicable performance requirements to be: (i) the IFC FI Exclusion List and (ii) applicable national laws and regulations. IFC also appraised the FI’s labor practices according to the IFC’s PS 2: Labor and Working Conditions and reviewed the FI’s capacity to manage E&S risks and to establish and maintain an Environmental & Social Management System (ESMS). Based on the review, the project will be required to:
Develop an ESMS to the satisfaction of IFC;
Identify responsible, qualified person/s to manage and implement the ESMS (ESMS officer);
Commit to implement the ESMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
Demonstrate commitment to applying 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