Myanmar MFI Hayman Capital raises $2m debt from Swiss Symbiotics SA

Hayman Capital, a deposit taking microfinance institution operating in Myanmar, has closed a $2-million debt investment from Switzerland-based social impact investor, Symbiotics SA, according an announcement.

The proceeds of the financing will be used to support the company’s microfinance operations in the country and serve an additional 15,000 new clients engaged in trading, production, agriculture and service sectors.

Prior to receiving the latest loan facility, in 2017, Hayman Capital raised a total of $1.9 million in loans from the Yangon branch of Malaysia’s May Bank.

The new debt round also reflects Symbiotics SA’s interest in in the microfinance space of Myanmar, given its previous $1-million investment in Myanmar Finance International Limited in 2017.

“We are committed to continuing our expansion in order to reach the unbanked population in this country and provide competitive financial services to them,” said Sultan Marenov, managing director and CEO of Hayman Capital Co Ltd.

Established in 2014, Hayman Capital in Myanmar is backed by Singapore-based investment company Hayman Capital Pte Ltd.

In Myanmar, Hayman Capital claims a loan portfolio of $11.94 million and over 71,000 active clients. To date, the firm operates out of 14 branches across Yangon, Bago, Ayeyarwaddy and Mandalay regions.

Hayman Capital’s total assets are disclosed at $18.05 million and equity at $10.61 million, with a 0.41 per cent of having a portfolio at risk.

Myanmar currently has 176 licenced microfinance institutions and about 18 of the largest MFIs operating in Myanmar cover 80 per cent of the market.

It was just in 2016 that Myanmar enacted new regulations that allowed local MFIs to borrow from local or international banks. Since then, local MFIs are seen raising money from banks such as Yoma Bank which has financed a total of K75.7 billion ($50.2 million) to 10 microfinance firms to date.

However, according to the Myanmar Financial Services Report of FMR, domestic banks are still reluctant to extend credit, due partly to a lack of familiarity with microfinance and foreign entities are prevented from owning land and buildings that could be used as collateral.

Other leading microfinance institution operating in Myanmar such as Alliance Microfinance in Myanmar Ltd, Vision Fund Myanmar, Proximity Designs, Pact Global Microfinance Fund have also raised financing in recent years to boost their operations in the country.

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