MFIL is a leading microfinance company in Myanmar.


  • Myanmar Finance International Limited (“MFIL”) is one of Myanmar’s largest microfinance companies.
  • Since MIL’s investment in MFIL’s in 2014 MFIL’s loan book has grown at a CAGR of 97% and its borrowers by a CAGR of 60%.
  • MFIL has been profitable for the past 4 years.
  • Microfinance has been identified by the Government as a priority sector to achieve poverty reduction in Myanmar, as it brings financial services to otherwise unbanked individuals.
  • MFIL’s shareholder group combines decades of successful experience investing in the microfinance sector with deep local knowledge playing an active role in managing the company and in accelerating the company’s growth.


Invested: US$2.7 million
Date of initial investment: 1 September 2014
Effective interest held by MIL: 37.5%

Business attraction / Investment thesis

The sector is attractive as demand far outstrips supply – there is a large informal lending market to be tapped.  Additionally, the Myanmar government remains very supportive of the sector, and many international development financial institutions have expressed interest in working with the sector as well.

At the company level, the main lending product uses the Grameen model of group lending methodology. MFIL also limits its exposure to weather/disease dependent sectors such as farming and livestock. As a result, MFIL is already profitable on an unleveraged basis, despite increased investment in systems and management upgrades, and will continue to grow its lending business through expansion into new products and expand its geographical coverage.

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. ACLEDA Bank from Cambodia and BRAC Bank from Bangladesh can be taken as examples of such transformations; while others such as SKS Microfinance of India have even obtained a public listing.

Company Background

Myanmar Finance International Limited (“MFIL”) is MIL’s investment into the microfinance sector, which has been identified by the Government as a priority sector to achieve poverty reduction in Myanmar.

Microfinance, defined broadly, is the provision of financial services to individuals and small enterprises that lack access to more established types of financial services. Hence microfinance provides much-needed small loans to the rural, unbanked population of Myanmar to enable start-up or expansion of small businesses such as, for example, roadside stalls or fishing boats.

MFIL began operations in 2012 when Myanmar passed the Microfinance Law. It was founded by a group of Myanmar nationals, led by U Htet Nyi, a highly-regarded businessman who also serves as the Honorary-Consul of Norway and Finland. MIL completed its investment into MFIL in 2014, and brought in the Norwegian Investment Fund for Developing Countries (“Norfund”) as a joint venture partner in 2015.


MIL has invested a total of US$ 2.7 million. The current shareholding structure of MFIL is:

  • MIL: 37.5%
  • Myanmar Finance Co Ltd (“MFCL”): 37.5%
  • Norfund: 25.0%

MFCL is the local founding shareholder who saw the commercial opportunity microfinance could offer, whilst contributing to economic development and livelihood improvement for middle to lower income households.

Norfund is the Norwegian development finance institution, established and owned by the Norwegian government to combat poverty in selected countries through private sector development.  One of the areas that it specialised in is microfinance and as a result brings significant experience to MFIL.