International Finance Corporation, the private lending arm of the World Bank, is proposing to extend a financing facility of $10-million, with a provision of converting the loan into equity, to Myanma Awba Group, an agriculture-based business in Myanmar.
The group is into manufacturing of agri inputs such as fertilisers and seeds and is also engaged in microfinance operations.
The IFC loan will fire the company’s $25-million project that involves setting up a new agro-chemicals formulation plant. The funds will also be used for boosting packaging and warehouse capacity, seed production, working capital and for its microfinance operations, according to a disclosure by IFC.
The new formulation plant as well as investments in equipment, machinery and most of the additional warehouse capacity will be located in Yangon’s industrial zones. New fertilizer distribution stations, other warehouses and microfinance branches will be located across Myanmar.
Myanma Awba, set up in 1995, is headed by Thadoe Hein, managing director, who together with his family own the group.
IFC is also engaged with the group’s MFI operations in a strategic advisory capacity. As part of the advisory service, IFC will provide corporate governance assessment and help with drafting and implementing relevant policies and related training.
IFC has been active in pumping funds in Myanmar corporations both through debt and equity investments. Some of its recent proposals include a $200-million financing for Myanmar Industrial Port modernisation, a $25-million funding in retail group City Mart and $40 million finance for a gas turbine project by Sembcorp and MMID.