Microfinance Firm Hayman Secures $1m Loan as Part of Aggressive Growth Plan

Microfinance lend­er Hayman Cap­ital has secured a $1 million loan from Malaysia’s May Bank as part of an ambitious EX ­pansion plan to enlarge its loan portfolio and be­come a market leader.

The company said last week that it was hoping to receive the first tranche of the loan before the start of the Thingyan holiday.

The Singapore-based lender, which set up in Myanmar in 2014, said in January that it aims to double the size of its op­eration here by the end of 2017.

Deal Street Asia report­ed last week that bosses were in “active negotia­tions” with other inves­tors to sign loan agree­ments worth up to $4 million by April 2018.

“We intend to sign loan agreements of an aver­age of $1 million every quarter,” said managing director and CEO Sultan Marenov.

Between April and De­cember last year the MFI grew its loan portfolio by 129 percent. It aims to double its loan portfolio every year for the next three years.

Hayman Capital’s growth follows the relaxa­tion last August of rules regulating microfinance. The reforms have local and foreign MFIs greater control over accessing loans, where they are al­lowed to operate and liquidity and solvency rates.

“It’s a good time to in­vest, particularly in the microfinance industry in Myanmar because the government has done many good things like open up the industry and lay down some good regu­lations, so they gave us the opportunity to grow,” Marenov told Myanmar Business Today earlier this year.

The deposit-taking lender has about 26,000 customers across it five branches, most of whom are poor entrepreneurs and sole traders or small­holder farmers.

Marenov has said he plans to add 20,000 bor­rowers this year and an­other 20,000 in 2018.

The lender is active in Yangon and Bago divi­sions but plans to expand into Mandalay and Saga­ing regions this year.


Source: Myanmar Business Today

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