Myanmar Finance International Limited (MFIL) And Yoma Bank Signed A Funding Agreement
USD 6 Million Local-Currency Equivalent MMK 8 Billion Funding Agreement in Support of MFIL’s Microfinance Funding Activities in Myanmar
Yangon, Myanmar – April 20, 2018 – Myanmar Finance International Limited (MFIL) is a microfinance institution that offers services to nearly 54,000 borrowers in Yangon and Bago, with an aggregate loan book of over MMK 11 billion. MFIL focuses on lending to micro-entrepreneurs, currently offering microfinance loans of up to MMK 3 million through 8 branch offices. MFIL’s operations began in Myanmar in 2012. Yoma Bank is one of Myanmar’s largest banks with over 3,000 staff and 74 branches nationwide.
Since a change in the legislation, enacted in mid-2016, allowed Myanmar banks to lend to microfinance institutions (MFIs), Yoma Bank has provided innovative funding solutions to MFIs. With this new funding agreement, MFIL is expected to enable additional estimated 25,000 borrowers. This funding is a structured back-to-back loan made possible through the support of the Norwegian Investment Fund for Developing Countries (Norfund), one of MFIL’s shareholders. Together with Norfund, Triple Jump B.V. and Developing World Markets LLC (DWM) are jointly providing the security required for the funding.
“Yoma Bank is pleased to support access to finance for Myanmar’s MFI Community. Specifically, our role in hedging foreign exchange risk and providing additional liquidity to MFI’s greatly increases their impact in the local community. Equally important, by enabling microfinance institutions like MFIL, Yoma Bank supporting micro-entrepreneurs to access the formal financial system.,” said the Advisor to the Chairman and CEO of Yoma Bank, Mr. Hal Bosher.
In Myanmar, financial services are still largely provided through the informal moneylenders. Yoma Bank’s funded MFIs provides access to finance to a new class of clients, including tens of thousands of micro entrepreneurs and smallholder farmers. ‘A more inclusive formal financial system contributes to higher transparency, better services, and more affordable loans.’ said Teun van Vlerken, Credit Risk Consultant with Yoma Bank under the LIFT-supported Agribusiness Finance Program.
“Norfund cooperates with and invests in financial institutions to strengthen their ability to supply capital and financial services to microbusinesses and the unbanked. Norfund appreciates the partnership with DWM, Triple Jump, Yoma Bank, and MFIL. Our investment will contribute to economic growth and poverty reduction in Myanmar,” said Fay Chetnakarnkul, Head of Asia (Norfund).
Mr. Po Yort, Managing Director of MFIL, added: “We are grateful to Norfund for bringing together other international lenders to make this facility possible. The participation of Norfund with other lenders underscores MFIL’s emphasis on both social impact and commercial sustainability. Further, we are excited by the opportunity to work with Yoma Bank to further increase our outreach to continue to grow our business. The facility is transformational as it will enable MFIL to double its loans portfolio from current levels.
You can download the press release in Myanmar version.
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