FMO proposes to invest $10m in Myanmar conglomerate Yoma Strategic Holdings

Yoma Strategic Holdings Chief Executive Melvyn Pun poses for a portrait after an interview in Singapore, on Thursday, Jan. 3, 2018. Photographer: Nicky Loh/Bloomberg

Dutch development bank FMO has proposed an investment totaling $10 million in Myanmar conglomerate Yoma Strategic Holdings.

The investment is proposed to be carried out through two separate funds, the lender stated in a recent disclosure.

While the bulk of the investment will be made from FMO’s flagship fund, as much as $3.3 million of the total financing will be derived from the Infrastructure Development Fund, a government-backed fund established by FMO in partnership with the Dutch Ministry of Foreign Affairs to finance infrastructure projects that can make a significant impact on socio-economic development in developing countries.

In Yoma, FMO is eyeing to invest in a company that is known to be one of the leading conglomerates in Myanmar. It runs a diversified portfolio of business in Myanmar and has a presence in property development, construction & piling services, project management, and design services.

The company, which is headquartered in Singapore and is listed on the SGX, operates through its four business segments of Yoma Land, Yoma F&B, Yoma Motors, and Yoma Financial Services.

The investment by FMO will be used to particularly build up and expand the group’s food storage, supply, and logistics businesses, which are part of its Yoma F&B segment.

“By investing in this transaction, FMO will support the availability of safe, high-quality food from farm to fork while developing the agribusiness chain in Myanmar,” the lender said in the disclosure.

Yoma is the latest Southeast Asia-based company known to be on FMO’s radar this year. Among its most recent investment proposals in the region include a $20 million contribution to Navegar II LP, the latest private equity vehicle of Philippines-focused PE fund Navegar, and a $10 million backing of Jungle Ventures III, the third venture capital fund managed by Singapore-based VC firm Jungle Ventures.

FMO, which is focused on supporting sustainable private sector growth in developing countries and emerging markets, has an investment portfolio of $10.4 billion, with a 28 per cent exposure to Asia. It focuses on covering sectors such as financial institutions, energy, and agribusiness.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.