DCM BAY Women Entrepreneur Bond The proposed investment entails IFC anchor investment of up to US$150 million in a US$220 million privately-placed, senior, unsecured USD-denominated Women Entrepreneurs Bonds to be issued by Bank of Ayudhya Public Company Ltd. (Krungsri or the Bank) to finance the expansion of the Banks women-led small and medium enterprises (WSME) loan portfolio (the Project). The Project will support the Banks ongoing efforts to increase its lending portfolio to WSMEs, an important sector that drives economic growth and employment, and to promote resilient and sustainable growth and strengthen financial inclusion in Thailand.   Krungsri is the fifth largest commercial bank in Thailand, in terms of total assets, with 11.4% market share of total banking sector assets (US$67 billion) as of December 2018. The Bank has a leading position in consumer lending and ranks #1 in retail and #5 in the SME and corporate loan segments. Krungsri is listed on the Stock Exchange of Thailand, with a market cap of US$9.4 billion as of July 31, 2019 and is recognized as a Domestic Systematically Important Bank by the Bank of Thailand.   IFC has a multi-level partnership with the Bank and its subsidiaries in the East Asia and the Pacific region, notably Hattha Kaksekar Limited in Cambodia, as well as the Banks major shareholder - MUFG Bank, Ltd., the largest commercial bank in Japan (MUFG Bank) Project-level Outcomes
Stakeholder effects - increased access to finance for WSMEs: The proposed project will use 100% of the bond proceeds to ramp-up the financing of new and existing WSME customers. Through this project, IFC anticipates the Bank's WSME loan portfolio to grow by 59 percent to US$4.2 billion (from a baseline of US$2.6 billion in 2018), serving 32,170 WSMEs (94 percent increase from a baseline of 16,568 in 2018), thus increasing the share of WSME borrowers as a percentage of total SME borrowers from 37.6 percent to 51.1 percent and growing WSME lending volume as a percentage of total outstanding portfolio from currently 33.7 percent to 37.5 percent in 2026.
Stakeholder effects - improved quality of financial and non-financial products and services for WSMEs: Through this project, IFC will support Krungsri to develop a WSME-centric customer value proposition, which will strengthen the Bank's existing SME business and help expand the Bank's WSME loan portfolio. The project is further expected to benefit WSMEs through additional non-financial services tailored towards WSMEs. 
Economy-wide effects - job creation: If the Bank grows its WSME portfolio as expected, IFC estimates the project will create between 45,000 and 83,000 jobs over the next five years.

Market Creation
Integration: Thai capital markets are considered somewhat developed relative to other emerging economies. The themed-bond market in Thailand is gaining momentum. Krungsri's Women Entrepreneurs Bonds will be the first social bond in the market and the first issuance 100-percent dedicated to WSMEs. IFC therefore anticipates that this new capital market instrument, endorsed and issued by a systemic commercial bank, will demonstrate to other market participants the opportunity of mobilizing funding from private sector investors, and thus enhancing financial market integration. As the first Women Entrepreneurs Bonds in Thailand issued under SBPs and ASBS by a commercial bank, the Project will further contribute to market integration via standard setting channels.
Inclusiveness: IFC anticipates the Project will significantly improve market inclusiveness for WSMEs by supporting a systemically important, publicly listed financial institution with a strong SME business to demonstrate to other market participants a successful pilot case for raising funds to establish an innovative women-centric lending program that will both improve access to finance for WSMEs and demonstrate the financial viability of investing in women entrepreneurs. Successful implementation is expected to trigger replication by other market participants, thus encouraging further issuances of themed (women-)bonds to mobilize private sector funding and to enhance WSME-focused financial and non-financial products and services for a more inclusive and competitive market environment.