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 legally merged into TMB Bank Plc. in 2004. This merger has enabled the Bank to operate as universal banking. In 2007, ING entered as a major shareholder, and now holds 25% of TMB’s capital.

The proposed investment is a loan of up to $100 million to TMB with a 3-year maturity.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

* These investment figures are indicative

TMB is headquartered in Bangkok, and has a network of over 450 branches throughout Thailand. The SME loans will be extended by TMB’s branches in flood-affected areas.

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

IFC''s support through this liquidity facility will signal that IFC is keen to work with TMB in its efforts to support SMEs in Thailand.

This intervention will signal to the market that (i) TMB is able to raise funds through an international borrower in time of crisis, 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 Review Procedure. During appraisal, IFC will analyze the FI portfolio and determine the Applicable Performance Requirements, if any, that would include a combination of: the IFC FI Exclusion List, the applicable National Social and Environmental Laws and regulations and the IFC Performance Standards. During appraisal IFC will also review the client’s capacity to manage the environmental and social risk and if required, to establish and maintain an environmental and social management system (ESMS). Based on the review, the project will be required to:
Develop an, or upgrade, if necessary, any existing Environmental & Social Management System (ESMS), within a timeframe agreed with IFC
Identify responsible, qualified persons to manage and implement the ESMS
Commit to implement the ESMS, to ensure that its financing activities 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