Microfinance Institution MFIL Secures $1m Loan From Malaysia’s Maybank

Myanmar Fi­nance Interna­tional (MFIL), the mircrofinance joint venture of investment company Myanmar In­vestments International (MIL), has secured a $1 million loan off Malaysian lender Maybank.

The funds will see MFIL try to grow its outreach from 42,000 customers and expand its loan port­folio, which stood at $5.7 million as of February, said a company press release.

“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,” said Aung Htun, MIL’s Man­aging Director.

“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,” he added.

This is MFIL’s latest cash injection since it se­cured a $1 million loan off Maybank in Novem­ber 2016 and brings the microfinance institution’s (MFIs) total paid up capi­tal to nearly $5 million.

In the two years since MIL’s initial investment, MFIL has experienced a compound annual growth rate of 78 percent and 149 percent respectively while its average loan size has risen 129 percent to K183,000, or about $135, in the same period.

Recent liberalisations to Myanmar’s microfinance sector has given both lo­cal and foreign MFIs more flexibility in how they secure funding.

But while the highly reg­ulated and risk averse for­eign banks based in My­anmar remain cautious about lending to FMIs, Maybank, the only Ma­laysian bank granted a li­cence to operate in Myan­mar, is playing benefactor to the fledgling sector.

Earlier this year the bank granted $1 million loan to Hayman Capital, a Singapore backed depos­it-taking MFI, operating in Myanmar.

MIL and Myanmar Fi­nance Company both hold 37.5 percent stakes in MFIL while Norfund, a Norwegian state-owned investment fund, holds the rest.

MIL, which is listed on the London Stock Ex­change, has a $21 million 9.3 percent shareholding stake in Apollo Towers, one of Myanmar’s largest phone tower companies.

 

Myanmar Business Today

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”, "Dagon City", “MOGE”, “yangon stock exchange”,"MECTEL", "hydropower", etc.

To learn about the business opportunities in Myanmar click here


To evaluate the various segments of the market that you could possibly enter base on your competencies you can do a Custom Market Entry Strategy Research. You can see a sample report at page "Actual Sample of Client Report”. Click here to go to page.


Do you know that IE Singapore is giving up to SGD 20,000 support for Singapore company to venture into Myanmar? To learn more click here



If you are interested to be listed in our Service Provider Directory as a supplier of services or products that we can use to match with the needs of our clients in Myanmar please fill up the online form by clicking here