MFIL

 

 

                    

MYANMAR FINANCE INTERNATIONAL LIMITED

 

Date of investment: 1 September 2014
Effective interest held by MIL: 37.5%

 

MIL has invested USD 1.92 million for a 37.50% stake in Myanmar Finance International Limited (“MFIL”) together with U Htet Nyi, a well-respected Myanmar businessman and the Norwegian Government’s Investment Fund for Developing Countries (“Norfund”).

 

Microfinance, defined broadly, is the provision of financial services to individuals and small enterprises that lack access to more established types of financial services.  In Myanmar, the government has identified microfinance as a priority sector to achieve poverty reduction targets.  This is achieved through the provision of much-needed small loans to the unbanked population to enable them to expand or start small businesses such as roadside stalls, small trading or manufacturing concerns, fishing boats, etc.  In following this model, MFIL has grown its business from nothing at inception of operations in 2012 to around 10,000 borrowers when MIL made its investment, to over 21,000 borrowers as of the end of September 2015.

 

MFIL has 6 branches in Yangon and Bago and is looking to expand this. 

 

Experience from other countries shows that eventually the strongest and most well-funded microfinance institutions can transition to become banks with a full range of financial services, creating value for shareholders in the process for example ACLEDA Bank from Cambodia and BRAC Bank; while others such as SKS Microfinance have even obtained a public listing.

 

In line with our investment philosophy of being a value-added shareholder and partner to investee companies, we have, since our investment, assisted with the recruitment of a new CEO for the company, initiated the upgrade of MFIL’s back office Management Information Systems (MIS), actively engaged in product development and spearheaded efforts to secure external debt financing.  We intend to continue to support and work with the company to achieve its fullest potential.

 

 

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