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

Photo: Myanma Awba Group.

International Finance Corporation (IFC), the private lending arm of the World Bank, will extend senior debt of $6 million and an equity injection of $1.5 million into Maha Agriculture Public Co ltd, a subsidiary of Myanma Awba Group.

Myanma Awba is a market leader in agrochemical fertilizers in Myanmar, connects to 3 million farmers across the country through its vast network of sales centres and dealers.

The Group, whose primary shareholder is Thadoe Hein, has engaged IFC Advisory Services since November 2015 for business planning and initial development of Maha Agriculture, founded in 2013. Earlier this year, IFC also committed a financing facility of $10 million to Myanma Awba to fuel its expansion in agribusiness as well as microfinance operations.

“The objective of this ongoing phase is to scale Maha’s innovative rural finance business, building on and operationalizing the strategic business plan,” the IFC said in its disclosure.  Maha will build on Myanma Awba’s strong brand recognition and customer royalty, it stated.

IFC is also in the process of extending a $21-million debt to about half a dozen of microfinance institutions providing from $3 million to $6 million financing to each MFI as a Kyat denomination loan, DEALSTREETASIA reported earlier.

The support of the long-term local currency financing to Maha is expected to help in its path to establishment and growth, and avoid any currency mismatches, stated IFC.

Business units of Myanma Awba include Myanma Awba Agrochemical, Piti Pyae Sone Co Ltd (logistics), Ayeyarwaddy Seeds, Myanma Awaba Fertilizers, Myanmar Pesticides Industries Co Ltd and the microfinance arm.

Earlier this year, Myanma Awba teamed up with Singapore-based payment service 2C2P for the launch of an over-the-counter cash acceptance service, 1-Stop.

Since the forming of the Myanmar Microfinance Development Programme in 2014, IFC expects to have a financing access to over 270,000 clients though its aggregate loan of over $70 million by 2017.

Also Read:

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

Asia-focussed payments firm 2C2P teams up with Myanma Awaba for new service

Exclusive: IFC to extend $21m debt to half a dozen MFIs in Myanmar

 

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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.