The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an investment of up to $75 million in a senior tranche of asset-backed securities (ABS) to support digital lending operations by SeaMoney (Capital) Co Ltd in Thailand.
The senior tranche will be backed by receivables from SeaMoney’s nano loan programme, which is regulated by the Bank of Thailand, IFC said in a disclosure.
The ABS will be issued by a special purpose vehicle established under Thai law.
SeaMoney (Capital), a financial services subsidiary of New York-listed Sea Ltd, provides digital financial solutions to low- to middle-income populations in Thailand, with a focus on women borrowers. Sea Ltd also operates Shopee, Southeast Asia’s largest e-commerce platform.
IFC’s proposed investment includes up to $50 million from its own account, with the remainder mobilized from external investors. The total ABS issuance, including a junior tranche, will amount to up to $100 million or its equivalent in Thai baht.
The funds will support SeaMoney’s lending programme, which targets micro-borrowers and small business owners in Thailand. At least 60% of the proceeds are earmarked for women borrowers, aiming to enhance financial inclusion.
“The development impact of the project will be delivered through increased access to support low-income individuals and microentrepreneurs, especially women borrowers,” the IFC said in its disclosure.
The investment structure is expected to help SeaMoney diversify its funding base and attract additional financing, providing financial additionality, the IFC noted.
In addition to the $75 million investment, the IFC plans to provide non-financial support to SeaMoney, including guidance on strengthening its environmental and social risk management framework and promoting responsible finance, consumer protection, and digital microfinancing best practices.
The IFC has been actively supporting micro, small, and medium-sized enterprises (MSMEs) in Thailand.
