August 30, 2021
The Bangkok office of Hunton Andrews Kurth assisted International Finance Corporation (IFC) in providing a three-year loan of up to $100 million to Ngern Tid Lor Company Limited (NTL), a leading non-bank financial institution (NBFI) in Thailand. The loan facilitates an additional $100 million to be provided by IFC and/or parallel multilateral lenders.
The proceeds of IFC’s loan are to be utilized for on-lending to Micro, Small & Medium Enterprises (MSMEs) in growing their local currency financing. MSMEs represent 86% of Thailand’s labor force and account for 45% of the nation’s gross domestic product.
NTL offers vehicle title loans, hire purchase and insurance brokerage to the underserved micro and small enterprises and individual customers across Thailand. Its assets totaled $1.6 billion with a gross loan portfolio of $1.5 billion as of September 30, 2020. NTL is a regulated non-deposit NBFI in Thailand and is currently jointly owned by Bank of Ayudhya (BAY) and a fund managed by CVC Capital Partners. BAY is 76.8% owned by MUFG Bank in Japan and was listed on the Stock Exchange of Thailand in April 2021.
The Hunton Andrews Kurth team comprised Bangkok partner Stephen Bennett and associate Tamrong Teo with London partner Robert Askew advising on English law matters and legal opinion.