IFC extends $10m financing to Myanma Awba for setting up agri inputs plant

Photo: Awba Group.

International Finance Corporation (IFC), the lending arm of the World Bank ,has extended a financing facility of $10 million to Myanma Awba Group Company Ltd, for the development of a crop protection plant in the country.

Myanma Awba is into manufacturing agricultural inputs and microfinance.

IFC’s financing is towards the establishment of an agricultural input complex and a formulation plant for crop protection products located in Hmawbi, north of Yangon, according to a press release.

“Establishing the new facility maintains Myanma Awba Group’s ongoing commitment to bring world-class technology to Myanmar farmers,” said U Thadoe Hein, Chairman and Group CEO.

The investment by IFC could be converted into equity as the stock market slowly develops in the country, said Aung Htet, marketing and communications manager of Myanma Awba.

The group is aiming to introduce advanced formulation and environmental technology through its manufacturing complex and meet 50 per cent of the country’s demand for these products.

Some of brands that Myanma Awba produces include Myanma Awba, Wisarra, Myanma Kaung Thu Kha and Evogro.

The loan by IFC was proposed in February 2016 to support the $25-million project. The fund will also be used for the manufacturing chain of the plant including packaging, seed production to its microfinance operations.

Set up in 1995, Myanma Awba is owned by Thadoe Hein, and currently connects about 3 million farmers throughout the country.

“Our support to Myanma Awba Group will facilitate improvements in agricultural productivity and create much-needed jobs along the agricultural value chain,” said Vikram Kumar, IFC Country Manager for Myanmar.

Myanma Awba’s business units include Myanma Awba Agrochemical, Piti Pyae Sone Co Ltd, Ayeyarwaddy Seeds, Myanma Awba Fertilizers, Myanmar Pesticides Industries Co Ltd and Maha Awba Microfinance.

Increasing the quality of productivity and overall development of agricultural sector plays an important role for Myanmar with the average yield and labor productivity is ranking one of the lowest among Asian countries.

“Supporting agribusiness is one of IFC’s priorities in Myanmar as it helps increase rural income and promote inclusive growth for about 70 percent of the country’s labor force working in this sector,” said Kumar.

IFC’s investment in global agribusiness reached $3.4 billion across the supply chain for the fiscal year ending June 2016. The agribusiness portfolio as of June 2016 stood at $5.6 billion.

Also Read: 

IFC to invest $7.5m in PE fund investing in Cambodia-Laos-Myanmar belt

Exclusive: IFC to invest $7.5m in Myanma Awba unit Maha Agriculture

IFC to invest $10m as convertible debt to fuel Myanma Awba’s expansion

 

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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.