TIDMMIL
RNS Number : 9138D
Myanmar Investments Intl Ltd
03 May 2017
Press Release 3 May 2017
Myanmar Investments International Limited
MFIL secures second loan from Maybank
Myanmar Investments International Limited [AIM: MIL] ("MIL" or
the "Company"), the AIM-quoted, Myanmar focused investment company
with existing investments in the telecom and microfinance sectors
and a well-developed pipeline of opportunities, today announces
that Myanmar Finance International Limited ("MFIL"), MIL's
microfinance joint venture, has signed an additional US$1 million,
local-currency denominated loan agreement with Malayan Banking
Berhad ("Maybank"), the only Malaysian bank to be granted a banking
license from the Central Bank of Myanmar. In total, MFIL now has
US$2 million in Kyat-denominated debt facilities in place.
This debt financing from Maybank allows MFIL to further increase
its outreach and expand its loan portfolio, which has grown to over
42,000 borrowers and 7.8 billion kyats (US$5.7 million at current
exchange rates) as of February 2017; a compound annual growth rate
("CAGR") of 78% and 148% respectively since MIL's initial
investment in September 2014. The average loan size provided by
MFIL has increased by 129% to MMK 183,000 (US$135) from MMK 80,000
at the time of the initial investment.
MFIL has now launched a new micro-business product to complement
the strong growth in group loans. Seven branches are now open; four
in Yangon, three in Bago and an additional Yangon branch is
scheduled to open in May 2017.
Microfinance is a sector prioritised by the Myanmar Government
to reduce poverty in Myanmar through the provision of financial
services to individuals who do not have access to conventional
and/or legitimate sources of funding. Through the loans offered by
MFIL, the un-banked population is provided with the necessary
funding to start or expand their own small business ventures. MFIL,
along with other microfinance companies, has facilitated and made
possible small businesses such as the cultivation of vegetables and
flowers; the production of handicrafts; woodwork furnishings and
various plastic products; food sellers; repair services and the
establishment of small grocery stores, clothing/textile shops and
pharmacy stores. Moreover, MFIL aims to support and empower the
women of Myanmar, who make up 80% of MFIL's borrowers.
Aung Htun, MIL's Managing Director said, "This is the second in
a series of debt financing initiatives that are planned for MFIL in
the near term, allowing MFIL to continue to consolidate its
position as one of the leading microfinance operators in Myanmar.
For the past two years, MFIL has had no non-performing loans and
its profits have consistently grown. This additional leverage
enhances profitability and return on equity."
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 nearly US$5 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 Andrew Pinder / David
Barklem/ Herring
Carolyn Sansom Alistair Roberts (Hong
Grant Thornton UK LLP Kong)
+44 (0) 20 7383 5100 Investec Bank plc
+44 (0) 20 7597 4000
Public Relations
Julian Bosdet / Dr. Jenny
Lee
Abchurch Communications
+44 (0) 20 7398 7714
Notes to Editors:
Myanmar Investments International Limited (AIM: MIL) is 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 ($21m 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 (ie multiple tenancies) on its portfolio of towers. In
June 2016, the US Government's Overseas Private Investment
Corporation ("OPIC") provided a $250m 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 top 10
microfinance companies in Myanmar. Since MIL invested, MFIL's
business has expanded rapidly; it's loan portfolio has a CAGR of
148% since investment. 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.
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.
MMK 1,358 = US$1 (as of 28 April 2017)
For more information about MIL, please visit
www.myanmarinvestments.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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