Singapore, April 18, 2016—IFC, a member
of the World Bank Group, is helping to improve Myanmar’s under-developed
transportation sector by providing $40 million of financing to Myanmar
Industrial Port (MIP). MIP is one of two major container ports in
Myanmar and a key trade gateway that handles more than 300,000 twenty-foot
equivalent units (TEUs) annually or 40% of the country’s container traffic.
The $40 million in mezzanine financing is
the first phase of a $200 million financing package which is expected to
include $160 million in long-term senior loans to be provided by IFC and
other foreign lenders. The financing package will help the company increase
capacity and efficiency at its container terminal in central Yangon, the
commercial capital of Myanmar. With IFC’s long-term funding, the
company will be able to complete the first phase of its expansion plans
which, together with the efficiency improvements, will increase the terminal’s
annual handling capacity to 500,000 TEUs or more.
The investment is IFC’s first in the transportation
sector in Myanmar and is part of a broader strategy to help Myanmar do
business more efficiently and more competitively thereby unlocking the
country’s potential for increased international trade and supporting job
creation and economic development.
“Thanks to IFC’s investment, we will be
able to further modernize our port operations and respond to the increasing
demands of international shipping lines and local traders,” said Captain
U Ko Ko Htoo, MIP’s Chairman. “We are also keen on IFC’s advice on bringing
our environmental, social and governance practices into
line with international standards.”
Myanmar’s container volumes are estimated
to have increased by 90 percent over the last 3 years due to rapid growth
in imports and exports following the government’s implementation of political
and economic reforms.
“IFC’s financing for MIP comes at a critical
time in Myanmar’s development when transport infrastructure is urgently
needed to realize the country’s growth potential,” said Hyun-Chan Cho,
IFC’s Head of Infrastructure and Natural Resources for Asia. “The MIP
loans will also help to catalyze investment by other private developers
and financiers in Myanmar’s infrastructure sector for which long-term
US dollar funding has not been readily available.”
IFC, together with the World Bank, is supporting
reforms and investments in Myanmar to strengthen the private sector and
create jobs in order to reduce poverty and boost shared prosperity. IFC
is working with the government and the private sector to improve the country’s
investment climate, access to finance, and infrastructure, with an initial
focus on the power, telecommunications, and ports sectors.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About Myanma Annwa Swan A Shin Group
(S) Co Ltd
Myanma Annwa Swan A Shin Group (S) Co Ltd
(MAS) is a leading container terminal in Yangon. MAS is growing rapidly
in line with Myanmar’s container market underpinned by the country’s
strong economic growth. MAS operates the port under the trading name Myanmar
About Myanmar Industrial Port
Myanmar Industrial Port (MIP) is located
within the port area in central Yangon city, the commercial capital, and
provides container handling and stevedoring services for major international
shipping lines. The Company has been operating for more than 12 years.
MIP handled 278,000 twenty-foot equivalent units ("TEUs") in
the fiscal year ended March 2015.