TIDMMIL
RNS Number : 7015L
Myanmar Investments Intl Ltd
23 April 2018
23 April 2018
Myanmar Investments International Limited
MFIL secures US$6 million loan
Myanmar Investments International Limited [AIM: MIL] ("MIL" or
the "Company"), the Myanmar focused investment company, today
announces that its microfinance joint venture, Myanmar Finance
International Limited ("MFIL"), has secured a US$6 million,
local-currency denominated loan facility (approximately MMK 8
billion) from Yoma Bank, one of Myanmar's leading banks.
Security for the loan was provided by the Norwegian Investment
Fund for Developing Countries ("Norfund"), one of MIL's joint
venture partners in MFIL, together with third parties Triple Jump
B.V. ("Triple Jump") and Developing World Markets LLC ("DWM"). Like
Norfund, Triple Jump and DWM are international investors/lenders
focused on lending to microfinance institutions globally.
MIL has played a leading role in co-ordinating the activities of
MFIL, Norfund, the international lenders and Yoma Bank to structure
and arrange this complex facility.
MFIL will use the loan to further expand its loan portfolio and
open new branches in Yangon and Bago, as well as continuing to roll
out its newly launched micro-business loan product.
As at 28 February 2018, MFIL continued its growth trajectory
with over 54,000 borrowers and a loan portfolio of MMK 11.5 billion
(US$8.6 million), being a compound annual growth rate ("CAGR") of
62% and 114% respectively since MIL's initial investment in
September 2014. Since then the average loan size provided by MFIL
has increased by 164% to MMK 211,000 (US$158).
Aung Htun, MIL's Managing Director noted, "MIL is committed to
making investments that are both profitable and also socially
transformational. MFIL is not only providing MIL with a great
return on capital but has helped to increase the income and
opportunities of over 50,000 families. This back-to-back facility
led by Norfund will allow MFIL to accelerate its lending."
"Norfund cooperates with and invests in financial institutions
to strengthen their ability to supply capital and financial
services to microbusinesses and the unbanked. Norfund appreciates
the partnership with DWM, Triple Jump, Yoma Bank, and MFIL. Our
investment will contribute to economic growth and poverty reduction
in Myanmar," said Fay Chetnakarnkul, Head of Asia Norfund.
"Yoma Bank is pleased to support access to finance for Myanmar's
MFI Community. Specifically, our role in hedging foreign exchange
risk and providing additional liquidity to MFIs greatly increases
their impact in the local community. Equally important, by enabling
microfinance institutions like MFIL, Yoma Bank is supporting
micro-entrepreneurs to access the formal financial system," said
the Advisor to the Chairman and CEO of Yoma Bank, Mr. Hal
Bosher.
MFIL is a joint venture between MIL (37.5%), Myanmar Finance
Company Limited (37.5%) and the Norwegian Investment Fund for
Developing Countries ("Norfund") (25%), with total paid up capital
of approximately US$6 million.
- Ends -
For further information please contact:
Aung Htun Michael Dean
Managing Director Finance Director
Myanmar Investments International Myanmar Investments International
Ltd Ltd
+95 (0) 1 391 804 +95 (0) 1 391 804
+95 (0) 94 0160 0501 +95 (0) 94 2006 4957
aunghtun@myanmarinvestments.com mikedean@myanmarinvestments.com
Nominated Adviser Broker
Philip Secrett / Jamie Barklem Andrew Pinder / David Herring
Grant Thornton UK LLP Alistair Roberts (Hong Kong)
+44 (0) 20 7383 5100 Investec Bank plc
+44 (0) 20 7597 4000
Notes to Editors:
Myanmar Investments International Limited (AIM: MIL) was the
first Myanmar-focused investment company to be admitted to trading
on the AIM market of the London Stock Exchange. MIL was established
in 2013 with the intention of building long term shareholder value
by proactively investing in a diversified portfolio of Myanmar
businesses that will benefit from the country's re-emergence and
ongoing economic development. The Company is led by an experienced
and entrepreneurial team who between them have considerable
industrial, corporate and financial management experience.
MIL aims to identify investments with strong growth which if
necessary can be "de-risked" through the introduction of
experienced senior line-management, mentors and / or strategic
partners sourced by MIL's management board. The Company's main
focus is on opportunities that are experiencing acute supply and
demand imbalances, such as within the consumer and
capacity-constrained sectors.
With its strong proprietary investment pipeline of deals, MIL
provides investors with a highly disciplined and conservative
investment process into one of the most promising growth
opportunities of this era.
MIL's largest investment (US$21 million cost for a 9.3%
shareholding) is in Apollo Towers, one of Myanmar's top telecom
towers companies with 1,800 towers. Apollo operates in the high
growth telecom sector with a strong management that is growing the
number of co-locations (i.e. multiple tenancies) on its portfolio
of towers. In June 2016, the US Government's Overseas Private
Investment Corporation ("OPIC") provided a US$250 million debt
facility to Apollo Towers.
MIL's first investment in August 2014 was into Myanmar Finance
International Limited ("MFIL") which today is one of the leading
microfinance companies in Myanmar. Since MIL invested, MFIL's
business has expanded rapidly. The business is profitable with zero
NPLs and a sustainable expansion plan for long term growth. In
November 2015, the Norwegian Government's Norwegian Investment Fund
for Developing Countries ("Norfund"), the Norwegian development
finance institution, also became a 25% shareholder in MFIL.
In May 2017 MIL announced it had established a pharmacy,
healthcare and personal care product franchise joint venture. It is
expected that the business will fill a vacuum in the present retail
landscape and at the same time tap into the rapid growth of the
middle and affluent classes in Myanmar. The two joint venture
partners are: a) an experienced retail group that runs over 55
pharmacy, health and beauty outlets in a neighbouring Asian
country; and b) an industry veteran with significant experience
leading Asian-based retail concepts.
MIL's latest investment in October 2017 was into the tourism
sector. Together with two leading Myanmar tourism entrepreneurs
(the "Myanmar Partners") it has established Myanmar Voyages Group
Company Limited ("Myanmar Voyages") to invest into tourism-related
assets in Myanmar.
Myanmar, a country of approximately 51.4 million people and
roughly the size of France, has been isolated for much of the last
50 years. Once it was one of the more prosperous countries in
Southeast Asia as it has an abundance of natural resources (oil,
natural gas, arable land, tourist attractions and a long
coastline), it is now one of the least developed countries in the
world.
The country has undergone an unprecedented and peaceful
transformational reform process, initiated by U Thein Sein's
Administration in 2011. This is now continuing under the elected
civilian administration led by Daw Aung San Suu Kyi which came to
power in April 2016 as a result of the first democratic elections
in 50 years. While the process is still evolving, the new
government has broad support and significant progress has been made
to the economic prospects of the country.
In October 2016, the United States government lifted all
remaining sanctions against Myanmar and re-admitted the country
into its preferred tariff system.
For more information about MIL, please visit
www.myanmarinvestments.com
MMK 1,335 = US$1 (as at 31 March 2018)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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