The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, has proposed a loan of up to $400 million to Malaysia’s Affin Bank Berhad, according to a project disclosure accessed by CrowdFund Insider.
The proposed loan will be used to expand financing for micro, small, and medium enterprises (MSMEs), including businesses owned by women, IFC said.
The proposed five-year senior unsecured loan comprises up to $100 million from IFC’s own account and up to $300 million to be mobilised through a combination of credit insurance policies and B1 loans, according to the project details.
The proceeds will be used by Affin Bank to extend credit to MSMEs, with a portion earmarked for women-owned MSMEs (WMSMEs), which the project identifies as an underserved segment of the Malaysian market.
Alongside the financing, IFC will provide advisory support to help the bank strengthen its gender-focused lending activities.
The engagement will assess existing levels of gender finance, identify internal capacity gaps, and help improve the bank’s ability to serve women entrepreneurs.
The advisory programme is expected to support the development of a gender strategy and a dedicated loan product for women-owned businesses, with the aim of expanding Affin Bank’s lending portfolio in the segment.
The proposed investment is also intended to strengthen financial inclusion in Malaysia by widening access to credit for smaller businesses that may face financing constraints.
IFC said it expects the expansion of gender-focused lending products to increase competition among existing providers and deepen the country’s MSME financing market.
Headquartered in Kuala Lumpur, Affin Bank was Malaysia’s ninth-largest banking group by assets, with MYR117 billion ($28 billion) as of June 30, 2025, according to the project information.
The bank is listed on Bursa Malaysia and carries an A3 rating from Moody’s Ratings with a stable outlook.
Its largest shareholders are SG Assetfin Holdings Sdn Bhd, with a 26.44% stake, Bank of East Asia, with 23.93%, and Lembaga Tabung Angkatan Tentera, with 22.01%.
SG Assetfin Holdings is wholly owned by the State Financial Secretary of Sarawak, who also holds a direct 4.81% stake in Affin Bank.
IFC’s assessment anticipates benefits for MSMEs through increased access to financing, while the proposed gender-focused initiatives are expected to help the bank build its capacity to serve women entrepreneurs.
The investment is also expected to contribute to the development of a more inclusive lending market by encouraging financial institutions to expand products targeting women-owned businesses.
