The Asian Development Bank will lend Singapore-listed, Myanmar-focused Yoma Strategic Holdings US$100 million to develop infrastructure businesses inside the country.
The funds will come in two tranches, with the first $50 million earmarked to fund Yoma Strategic’s cold storage, cell tower and vehicle leasing businesses. The second tranche is for subprojects in transportation, logistics, distribution and other sectors.
Yoma Strategic currently generates the majority of its revenue from property, though CEO Andrew Rickards has said the firm would like to see this change to a 50-50 split between revenue from property and other sectors by 2020.
The firm has begun working in areas outside real estate, including the three businesses financed by the first tranche of the ADB’s loan.
It is a partner in a cell tower company with Digicel Asian Holdings, has agreed to set up a cold storage logistics business with Kokubu and Co and also set up a subsidiary called Yoma Fleet for a vehicle operating lease and rental business in January 2014, all of which are to benefit from the agreement with the ADB.
Yoma Strategic chair Serge Pun said the firm has more projects in its pipeline, adding infrastructure is a large constraint for the country at the moment.
“Myanmar has a lot of opportunity and we all know that,” he said. “But these opportunities cannot be realised to their full potential unless we have the infrastructure that supports it.”
Mr Thieme said it is a medium-term loan, adding it was up to the borrower to disclose the interest rate and term. Mr Pun did not comment on the interest rate and term.
Yoma Strategic also recently announced it is bringing KFC to Myanmar and was part of a consortium that inked a deal to upgrade Mandalay airport.
Source: MYANMAR TIMES