Nay Pyi Taw, Myanmar, September 16,
a member of the World Bank Group, has agreed to provide Yoma Bank Ltd.
with a $5 million convertible loan and help the lender improve its risk
management and corporate governance in support of the bank's growth strategy.
The package is expected to help Yoma Bank expand lending to small and medium
enterprises, a sector of Myanmar's economy in desperate need of financing
to grow and create more jobs.
The loan is the first step in IFC’s financial support for the bank, which
may be further increased to up to $30 million in coming years in the form
of equity, senior debt and trade guarantee lines under IFC’s Global Trade
Finance Program, which boosts banks’ capacity to provide financing for
importers and exporters. The additional support for Yoma Bank will be subject
to further due diligence and subsequent approvals from IFC’s management
As Myanmar emerges from years of isolation, the demand for financial services
in the country is huge. More than 70 percent of adults do not have formal
access to credit, deposit, and other financial services, such as insurance
and remittance; only 5 percent of adults have a bank account in their name.
“It is crucial that small and medium enterprises in Myanmar have access
to financial services that allow them to operate and thrive,” said Yoma
Bank Executive Chairman and CEO U Theim Wai, also known as Serge Pun. “Yoma
Bank is proud to grow its business in partnership with IFC to support SMEs
in Myanmar, which are critical for the country’s economic and social development.
It is our aim to be a leading SME Bank in the country and to contribute
toward developing a vibrant SME sector in the country.”
In addition to the loan, IFC will advise Yoma Bank on identifying and installing
a core banking system, enhancing its risk management and corporate governance,
and developing new products and delivery channels for small and medium
enterprises over the next three years. Yoma Bank will also develop policies
and procedures to identify and manage environmental and social risks associated
with the business activities it finances. IFC’s investment and advisory
support is expected to help Yoma Bank provide an additional 1,000 loans
worth $370 million to small and medium enterprises in Myanmar by 2019.
“IFC puts a strategic focus on supporting the development of Myanmar’s
financial and banking sector as banks are critically important in helping
entrepreneurs grow their businesses and contribute to the overall economy,”
said Karin Finkelston, IFC’s Vice President for Asia Pacific. “IFC supports
Yoma Bank and other lenders to develop environmental and social sustainability
and standards and governance structures that will help them integrate into
the international banking community and better serve the needs of Myanmar’s
small and medium enterprises.”
Founded in 1993, Yoma Bank is one of Myanmar’s leading fully licensed
commercial banks with 2,300 employees and more than 50 branches covering
25 major cities nationwide. It is recognized as one of the most progressive
banks in Myanmar and is leading an effort to bring responsible banking
to the country with a strong emphasis on good corporate governance and
conservative capital-ratio policies. The lender is well positioned to support
Myanmar’s continued economic growth.
IFC, together with the World Bank, is supporting reforms and investments
in Myanmar to strengthen the private sector and create jobs to reduce poverty
and boost shared prosperity. IFC aims to improve the country’s investment
climate, access to finance, and infrastructure, with an initial focus on
the power and telecommunications sectors.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
About Yoma Bank Ltd.
Yoma Bank is one of Myanmar’s largest
private banks with 2,300 employees and more than 50 branches covering 25
major cities nationwide. The Bank was founded by Serge Pun, also known
as U Theim Wai, in Myanmar and its first branch opened in August 1993 in
front of the iconic Aung San Stadium in Yangon. As a private bank, Yoma
Bank has no government participation. It was the first bank in Myanmar
to use a computerized accounting system and pioneered wireless banking
communications. For more information, visit www.yomabank.com
or contact Zarchi Tin at email@example.com.