The International Finance Corporation (IFC), the private lending arm of the World Bank Group, has completed its investment of $7.5 million in a private equity vehicle of Singapore headquartered Emerging Markets Investment Advisers Pte Ltd (EMIA), according to an IFC official.
The investment, that was first proposed in September 2016, was into the Cambodia-Laos-Myanmar Development Fund II (CLMDF II), a generalist private equity fund set up in 2015, targeting investments in small and medium-sized enterprises in the three nations.
The target size of the fund, CLMDF II, was pegged at $70 million with IFC’s equity commitment capped at 20 per cent of the total commitments.
Investors in EMIA include Norfund, Finnfund, Ministry of the Foreign Affairs of the Netherlands and the Swiss Investment Fund for Emerging Markets.
The generalist fund has a mandate to invest across a variety of sectors including agriculture, education, healthcare, retail, financial services and business services.
The fund marks EMIA’s foray into Myanmar and its second outing in Cambodia and Laos.
IFC also contributed to EMIA’s previous fund, Cambodia-Laos Development Fund (CLDF), set up in late 2009 to provide growth capital to SMEs in the two countries.
Portfolio companies of EMIA include AMIK from Camboida, a leading microfinance institution having over 450,000 clients; BRICo, a premium quality rice producer in Cambodia; iCare Benefits, an employee benefits program providing employees in Cambodia, Laos and Myanmar; and Planet Online, an Internet service provider in Laos.
IFC has been actively investing in the private sector, totaling an accumulative investment of $556 million from its own account as of the end of June 2017. Some of its recent investments in Myanmar include in Myingyan 225 MW combined cycle gas turbine power plant developed by Sembcorp Utilities Pte Ltd and MMID Utilities Pte Ltd, Amata Hotel Group.