Chandler MHM Advises Muangthai Capital on a USD 335 Million Social Bonds

Bangkok, Thailand – 8 October 2024 – Chandler MHM advised Muangthai Capital (MTC), Thailand’s largest microfinance non-bank financial institution, on its 4-year USD335 million amortizing social bonds, with J.P. Morgan as sole lead arranger and development finance structuring agent. For the first time, MTC was assigned an international credit rating for its bond issuance. This bond transaction was also notable in the market, being the first offshore US dollar bond issuance by a non-bank financial institution in Thailand. The bond issuance is for MTC to diversify its sources of funds.

Social bonds, which are used to finance projects with positive social outcomes, have been increasing in popularity in Thailand in line with the trend towards sustainable and responsible investment. MTC seeks to provide finance to groups who do not have access to traditional banking. MTC is also committed to monitoring and reporting the impact of its financing on the UN Sustainable Development Goals on an annual basis. The company's focus on microloans helps support economic growth and financial inclusion, particularly for underserved populations such as small business owners and individuals in rural areas.

The team from Chandler MHM included Doungporn Prasertsomsuk, Partner, supported by associates Poonpha Moosirilert, Pradchayada Maneeratanapron and Onpreeya Kitcharoen, and Tip-apa Limvichai, Partner, supported by Varisa Soonyakanit, Senior Associate, and Jongkotchakorn Phantophas, Associate.

Doungporn Prasertsomsuk, Partner, commented, "We would like to congratulate our team on the success of this groundbreaking US dollar social bond issue. We hope that this milestone transaction will be a precedent for other non-bank financial institutions in Thailand to benefit from tapping into the international bond markets.”

Recognized as an innovative leader in Thailand’s debt capital markets, Doungporn Prasertsomsuk has been consistently ranked top-tier by independent global legal publications, cementing her status as a leader in the field.