IFC scaling up in Thailand

The IFC is “absolutely open for business” when it comes to investing in Thailand, Dorothy Berry, vice president of human resources and administration, told Krungthep Turakij TV. 

“Two and a half years ago our portfolio here was about $50 million, and just in that time we have scaled [up] significantly and our portfolio is about $500 million, a tenfold increase just recently, and our plans are [that] over the next three to five years we would like to be at the $1-billion mark.”

The IFC has seen much progress in the restructuring of businesses since the financial crisis. Companies are becoming stronger and several areas are now attractive to the IFC. 

Besides investments such as ACAP, the member of the World Bank Group plans to continue its sustainable growth by financing projects, mobilising capital in international financial markets and providing advisory services to businesses and governments. 

It aims to support small and medium-sized enterprises in coping with climate change. Investment would go towards areas such as renewable energy, clean technology and energy efficiency, as Thailand is among the top 25 countries in greenhouse-gas emissions. Solar Power Co, the country’s first commercial solar-power producer, is backed by the IFC’s $1.7-million equity investment. SPC opened the $22-million Korat I plant in 2010, the largest utility-based solar farm in Southeast Asia. SPC obtained a $12-million local-currency loan for the project from Kasikornbank and the IFC provided $1.1 million to two SPC projects in the Northeast in 2010. The project has provided jobs to dozens of people. 

The IFC helps companies to expand beyond borders. With expertise in operating a network of more than 100 offices worldwide, it can add value to local companies willing to venture abroad, Berry said.

“Companies are growing stronger and looking at investment opportunities. I think this is just really the time for these companies to seize the moment,” she said. 

The baht’s appreciation is an issue, but it does not stop companies from making strategic plans to grow domestically and beyond. 

The focus has been the banking industry, with many looking at neighbouring countries such as Laos and Cambodia.

However, in expanding, banks should adhere to international standards for environmental and social responsibility, she said. 

The IFC is also geared up to support the government programme to improve water management after the floods of late 2011 and to help companies grow through loans and equity investment.