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

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