SLCM Ltd signs MoU with Myanmar’s United Amara Bank

KOLKATA: SLCM Ltd, the wholly owned subsidiary of SLCM (Sohan Lal Commodity Management) Group has signed MoU with Myanmar’s United Amara Bank for collateral financing in Myanmar. The step aimed at strengthening the network for providing collateral management solutions to Farmers, Processors, Traders, Exporters & Importers across Myanmar.

United Amara Bank will offer their customers financing for their commodities which will be stored at SLCM managed warehouses for a stipulated period. SLCM Ltd. would undertake sampling, testing, grading, assaying, fumigation, aeration and quality certification of the commodities to ensure the quantity & quality of the pledged commodities.

On the occasion, Mr. Sandeep Sabharwal, SLCM Group CEO said, “We have proven our capabilities with our earlier tie-ups in Myanmar and this partnership will strengthen our foothold there. Our process-oriented model has been successful in India where scientific warehousing is gradually becoming a priority. Collateral financing has been a challenge in Myanmar but recently we have seen a paradigm shift in the policies & economy, especially relating to agriculture and collateral financing. Myanmar is an important region for pulses production as India imports 70%-80% of its pulses from Myanmar. As per our strategy this fiscal, we are expanding into key geographies to replicate our model and this is another step towards this goal.”

Mr. Than Win Swe, CEO of United Amara Bank said, “We have over the last 3 years engaged in Stock Financing of a number of Import and Export customers and a Collateral Management Scheme will allow us to explore expanding this activity and provide more options for our customers.”

Myanmar, where collateral based lending is limited mostly to land holdings, the recent shift of banks to include stock and goods as collateral is a landmark achievement.

Through the initial tie-ups with Yoma Bank and C B Bank, SLCM Ltd. has enabled disbursement of loans amounting to 625,000 USD and have managed 110,000 sq feet of space, 14 different commodities with a throughput of approx. 4.5 MT since commencement.

With this, SLCM Ltd. becomes the only warehousing & collateral management services provider in Myanmar & has tie-ups with three leading nationalized banks including Yoma Bank, C B Bank & United Amara Bank.

Source: The Economic Times

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, “Puma Energy”, “MOGE”, “yangon new town”,”MECTEL”, “hydropower”, etc.

 Opportunities from COVID19


Looking for foreign investors to invest in your business in Myanmar