Mahar Bawga Finance Company Limited (MBF) And Yoma Bank Signed A Funding Agreement
The Semi Collateralized MMK 2.2 Billion Funding Agreement will Benefit Lending to Five Thousand New Customers
Yangon, Myanmar – Feb 1, 2019 – Yoma Bank and Mahar Bawga Finance Company Limited (MBF) signed a MMK 2.2 billion funding agreement in support of MBF's operations in Myanmar on 1st February. With the funding provided by Yoma Bank, MBF aims to reach an additional five thousand new customers. The partnership aims to address the growing demand of consumers, who are in need of unsecured loans for personal or business development. MBF started their business operations in 2014 with a mission to facilitate loans for the businesses and individuals. Currently, MBF is offering financial solutions to more than fourteen thousand clients in Yangon with an aggregate loan book of MMK 4.59 billion.
Yoma Bank is one of Myanmar’s largest banks with over 3,000 employees and 80 branches throughout the country. Yoma Bank takes the lead in bringing the unbanked population into the formal financial system in partnerships with Micro Finance Institutions and Non-Bank Financial Institutions, which are the drivers of economic growth and the development of Myanmar. This is the Bank’s first semi collateralized funding agreement supporting NBFIs. Yoma Bank believes this partnership will share benefits not only to the two parties involved, but also to consumers by improving the level of their borrowing behavior and financial literacy.
“Yoma Bank is pleased to support Mahar Bawga Finance in providing important funding to the people of Myanmar. This partnership highlights our ongoing commitment as Myanmar’s largest provider of liquidity to Myanmar’s MFIs and NBFIs. As we start a new year Yoma Bank has provided 75.7 B of financing to 10 MFIs since pioneering this structure l. We are proud to do our part in supporting financial inclusion in Myanmar.” said Hal Bosher, Chief Executive Officer, Yoma Bank.
At present, MBF is accommodating various types of loans and financing programs, suiting the diverse needs of individuals, such as automobile and mortgage collateralized lending, leasing and consumer financing targeted to white-collar workers in Myanmar. 85% of MBF’s loan book is consumer financing. MBF has its headquarters in Sanchaung township and is planning to launch a new branch in Yangon in the near future.
MBF, is the first NBFI in Myanmar funded indirectly by IFC to inject more money in non-banking sector in Myanmar through YOMA Bank, which is IFCs first direct investment in Myanmar. This partnership with YOMA is another mile stone in Non-banking finance sector for providing financial support to society. And MBF is please to inform that product financing is going to be launched soon in market to achieve the target of 5-7 Billion market in non-durable products financing. According to Mr.Katsunori Aita, Vice President of MBF, company has already planned for four branches in this year to expand its operation. First branch is soon going to be open in this month in South Okkalapa, with projected business of two billion for each branch by end December 2019. MBF is looking forward for another major step with YOMA bank and double its operation, to provide more liquidity in market.
You can download the press release in Myanmar version.
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