IFC considers extending loan of up to $30m for Myanmar’s Thilawa terminal

Photo: Myanmar International Terminals Thilawa.

The International Finance Corporation (IFC), a member of the World Bank Group, is considering extending a loan of up to $30 million for the development and operation of a greenfield bulk terminal in the Yangon region of Myanmar.

The proposed IFC investment comprises an IFC ‘A’ loan of up to $15 million and a parallel loan of up to $15 million, IFC said in a disclosure.

The terminal, located in the Thilawa port zone on the eastern bank of Yangon River, will have an effective capacity of 1 million metric tons. It will house a 230-meter jetty and an onshore complex with 40,000 metric tons of silos and 20,000 metric tons of grain warehouse.

The Thilawa terminal is being developed by Myanmar’s Lluvia and Japan’s Kamigumi as part of a 75:25 joint venture. Lluvia, formed in 2015, itself is a joint venture between Myanmar’s Capital Diamond Star Group, which holds an 85 per cent stake, and Mitsubishi Corporation.The total project cost is estimated to reach $59 million.

The terminal will facilitate trade in the region and allow goods to be transported more efficiently and at a lower cost, benefitting businesses and individuals alike, IFC noted in its disclosure.

“Significant long-term financing is not easily available in Myanmar. The proposed financing with a longer tenure than what is readily available in the market will provide a debt repayment profile that also matches the cash flows of the project critical for ensuring its financial sustainability, said IFC in the statement,” the disclosure added.

The terminal will be operating under a 50-year land lease agreement which includes built-operate-transfer type concession terms with the Myanmar Port Authority. It will primarily serve the captive demand of agri commodities of Lluvia, in addition to third-party demand.

Back in early 2016, IFC had also proposed to offer $200 million debt financing to Myanmar Industrial Port.

Also Read:

IFC extends $13.5m financing package to three Myanmar MFIs

IFC to extend $200m financing for Myanmar Industrial Port modernisation

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