TIDMMIL
RNS Number : 1331J
Myanmar Investments Intl Ltd
26 June 2017
26 June 2017
Myanmar Investments International Limited
MFIL secures loan through Symbiotics; approval for a
deposit-taking license
Myanmar Investments International Limited [AIM: MIL] ("MIL" or
the "Company"), the Myanmar focused investment company with
existing investments in the telecommunications, microfinance and
pharmacy retail sectors and a well-developed pipeline of
opportunities, today announces that Myanmar Finance International
Limited ("MFIL"), MIL's microfinance joint venture, has secured a
US$1 million, local-currency denominated loan facility through
Symbiotics SA. Symbiotics SA is a leading investment company
specialized in emerging, sustainable and inclusive finance
headquartered in Geneva, Switzerland. In total, MFIL now has US$3
million in Kyat-denominated debt facilities in place and MFIL is
working on increasing its leverage to at least twice its paid-up
capital within 2017.
MFIL will use the Symbiotics facility to further expand its loan
portfolio and outreach, including opening new branches in Yangon
and Bago, as well as continuing to roll out its newly launched
micro-business loan product.
As at 31 March 2017, MFIL continued its growth trajectory with
over 43,000 borrowers and a loan portfolio of 8.1 billion kyats
(US$6 million), being a compound annual growth rate ("CAGR") of 77%
and 145% respectively since MIL's initial investment in September
2014. Since then the average loan size provided by MFIL has
increased by 126% to MMK 181,000 (US$133).
Anya Berezhna, South & South East Asia Regional Manager for
Symbiotics said, "Symbiotics is pleased to partner with MFIL to
facilitate financing to local entrepreneurs and MSMEs (micro, small
and medium enterprises). This investment will help grow our
outreach in Southeast Asia and in areas where financial support is
most needed."
In addition, under the revised regulatory regime established by
the Financial Regulatory Department ("FRD"), the microfinance
regulator in Myanmar, MFIL has also been approved to continue as a
deposit-taking microfinance institution ("DMI"). The DMI license
will permit MFIL to take voluntary deposits from MFIL's members.
MFIL believes that it is to-date only the fourth DMI to be so
approved, out of a total of 162 Myanmar microfinance
institutions.
Aung Htun, MIL's Managing Director added, "FRD's revised DMI
licensing regime rightly imposes more stringent criteria for
microfinance institutions in Myanmar, including two years'
consecutive profitability and strong internal controls. At the same
time, successfully securing a loan from an international impact
lender such as Symbiotics not only demonstrates the strength of
MFIL's operations, but also the appeal of its social metrics to
such impact lenders. We are pleased with both developments and will
build on this momentum to continue to grow MFIL's business and
further develop its position as one of the leading microfinance
companies in Myanmar."
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$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 / Alejandra Campuzano
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 range 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.
To date the Company has raised over US$40 million, predominantly
from institutional investors, family offices and high net worth
individuals.
MIL aims to identify businesses 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 pipeline of business opportunities,
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 for a 9.3% shareholding)
is in Apollo Towers, one of Myanmar's top telecommunications towers
companies with 1,800 towers. Apollo operates in the high growth
telecommunications 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 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 top 10
microfinance companies in Myanmar. Since MIL invested, MFIL's
business has developed 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. The Company has made an
initial investment of US$495,000 for a 45% stake. The Company
expects to invest further capital in the business over the next few
years as it continues to expand.
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
http://www.myanmarinvestments.com
About Symbiotics:
Symbiotics is an investment company specialized in emerging,
sustainable and inclusive finance. Since inception in 2005, it has
invested US$3.6 billion in more than 300 institutions in over 70
emerging countries, working as an advisor or manager of about 30
investment funds and many institutional investors. The firm is
headquartered in Switzerland, with offices in Cape Town, London,
Zurich, Mexico City and Singapore, regrouping over 100 employees
globally. Symbiotics currently reaches out, indirectly through its
investments, to 1,600,000 small enterprises and low income
households at the base of the pyramid in emerging and frontier
markets.
symbioticsgroup.com
MMK 1,362 = US$1 (as at 31 March 2017)
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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