Yoma Bank, the financial services arm of First Myanmar Investment Co Ltd, has injected a second tranche of K6.8 billion ($4.4 million) in a follow-on financing round of BRAC Myanmar Microfinance Company Limited to expand its activities in the country, according to an announcement.
BRAC will use the financing to expand its microfinance services for women and low-income families living in the outskirts of cities of Myanmar.
With the funding, BRAC hopes to expand its microfinance coverage to an additional 15,000 households.
Prior to the latest funding agreement, BRAC raised a K2 billion ($1.3 million) financing facility from Yoma Bank in March.
BRAC was founded in 1972 by Sir Fazle Hasan Abed in Bangladesh and has since expanded its programmes in other countries including Afghanistan, Pakistan, Tanzania, Uganda, South Sudan, Myanmar, Nepal and the Philippines.
BRAC expanded to Myanmar in 2014 and has served over 79,000 families across the country with an aggregate loan book of K17 billion ($10.9 million). The company has 49 branch offices in the rural Yangon, Bago, Mandalay, Naw Pyi Taw and Sagaing regions.
The ticket loan size offered to families range between K150,000 ($97) and K10 million ($6,469).
“BRAC will use this money to meet the financing demand mainly from women micro entrepreneurs and traders and small farmers. We are happy to have this partnership with Yoma Bank in making Myanmar’s microfinance sector a truly inclusive one in particular creating better opportunities for the women let them drive out the poverty from the country,” said Tariqul Islam, Country Representative, BRAC Myanmar Microfinance Company Limited.
Yoma Bank has signed a number of MFI funding agreements in Myanmar including a $4.9-million agreement with VisionFund Myanmar, $11.5 million with Pact Global Microfinance Fund and $1.44 million with Advans Myanmar.