Vietnam’s Dragon Capital inks microfinance JV with Myanmar’s Loi Hein Group

By Nguyen Thi Bich Ngoc

April 6, 2017

Vietnam’s investment firm Dragon Capital has forged a joint venture with Myanmar-based Ruby Financial Company to provide microfinance services in the frontier market.

Loi Hein Group’s Ruby Hill Financial will hold a majority stake of 51 per cent in the JV, while Dragon Capital will own the rest.

The JV, Ruby Hill Microfinance, will start operations with an initial capital of $5 million to offer inclusive loan products and services to the burgeoning workforce in Myanmar, Dragon Capital said in an announcement on April 5.

Sai Sam Htun, chairman of Loi Hein, and Dominic Scriven, chairman of Dragon Capital, will jointly chart out the strategic business course for Ruby Hill Microfinance, while Loi Hein’s chief strategy officer Trinh Proctor has been appointed as CEO of the microfinance institution.

Dragon Capital is the earliest investment fund in Vietnam, managing $1.5 billion assets in public and private equities, fixed income and property. It has a strong track record in working with the finance sector in Indochina.

It recently exited Cambodia’s microfinance unit PRASAC to LOLC International Private Limited and Bank of East Asia. The firm had invested in PRASAC since 2006.

Meanwhile, Loi Hein, as Myanmar’s leading consumer discretionary group, has been diversifying into the finance service industry with the establishment of Ruby Hill Financial and KTZ Ruby Hill Securities, a partnership with Thailand’s KT ZMICO.

The regional expertise of Dragon Capital, combined with Loi Hein’s local knowledge, is expected to help the JV better tap the unbanked and underbanked community of Myanmar, which accounts for 80 per cent of the population. The unmet financing demand in the country is estimated at $1 billion.

Also read: 

Bank of East Asia partners LOLC to take majority in Cambodian micro lender

S Korea’s Hanwha, BIDV join FPT, Dragon Capital to run $8m accelerator in Vietnam

Dragon Capital, StanChart join hands to launch Vietnam Fintech Club to develop nascent sector

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.
APPLY NOW

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.
APPLY NOW