SINGAPORE: The Republic’s United Overseas Bank (UOB) has become the first foreign bank to announce an onshore loan in Myanmar, after nine foreign banks were granted provisional operating licences in October last year.
In a statement on Tuesday (May 6), UOB said it is offering onshore financing to Rangoon Excelsior – a French-Myanmar joint venture. The loan will be used to refurbish a former colonial building in downtown Yangon into a five-storey hotel.
UOB, which opened its Yangon branch on Monday, said the hospitality sector is one of the key industries it will focus on as it expands its business in Myanmar.
Mr Ian Wong, Managing Director and Head of Strategy and International Management of UOB, said: “Since the opening up of Myanmar’s economy two years ago, we are seeing many of our clients’ interests in Myanmar turning into real investment.”
“In our pipeline of deals, we have foreign direct investment coming from various regions, from Asia to Europe. This shows that Myanmar is becoming part of the expansion and investment plans of Asia and global companies.”
Source: Channel News Asia