IFC grants $3m loan to SLCM to expand Myanmar agribusiness

IFC/World Bank HQ. Photo: IFC

The International Finance Corporation (IFC), a member of the World Bank Group, has provided a $3-million loan to agri­-logistics firm SLCM Limited, the Yangon-based subsidiary of Delhi-headquartered Sohan Lal Commodity Management.

The $3-million loan will come directly from IFC’s own account and in its capacity as an implementing entity of the private sector window of the Global Agriculture and Food Security Program (GAFSP), it announced in a statement.

Established in 2014, SLCM Limited provides community warehousing services, agri-financing, collateral management and procurement services. The capital will be used to expand the company’s warehousing facilities and allied services in Myanmar.

Farmers in Myanmar face the problem of poor storage facilities and as a result, are often unable to sell their harvested products at a good price. Post-harvest losses in Myanmar stand at around 20 per cent, according to the announcement.

IFC’s investment will help address these issues and allow the company to ‘bring sophisticated warehousing and allied services’ to Myanmar. This will help farmers store volumes of harvested products while reducing post-harvest losses that are caused by infestation, excess humidity and inadequate storage.

“We have replicated our best practices and expertise in agriculture warehousing domain in Myanmar. In the past five years, we have been able to reduce post-harvest losses to 0.5 per cent in the country, thus helping every player in the farm-to-market chain,” said Sandeep Sabharwal, Group CEO, SLCM.

SLCM Group, which claims to manage a technology-enabled network of more than 3,352 warehouses and 19 cold storages across India, will use the capital to scale up its operations and expand its presence in Myanmar.

Subsequently, the investment is expected to attract more banks and collateral managers to engage in the business of commodity-backed financing.

Since 2013, IFC has invested over $1.3 billion in Myanmar; and agribusiness is one of its key investment areas.

Also Read:

IFC closes $20m debt financing in METRO Wholesale Myanmar

IFC eyes opportunities in finance, agri as investments near $1.3b in Myanmar

IFC mulls extending $6m loan to India’s SLCM for agri finance facilitation in Myanmar

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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).

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  • 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.
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