A semi collateralised funding agreement was signed between the two companies on February 1, according to its announcement.
MBF, which began its operations in 2014, claims to offer financial solutions to over 14,000 clients in Yangon with an aggregate loan book of K4.59 billion ($3.04 million)
“This partnership highlights our ongoing commitment as Myanmar’s largest provider of liquidity to MFIs and NBFIs,” said Yoma Bank CEO Hal Bosher.
The semi collateralised funding is the first for Yoma Bank and the bank believes the partnership will help improve the level of borrowing behavior and financial literacy of the consumers.
The bank has so far provided K75.7 billion ($50.2 million) of financing to 10 microfinance institutions in the country. Yoma Bank has so far provided financing to Easy Microfinance, BRAC Myanmar Microfinance Co Ltd, VisionFund Myanmar and Pact Global to support their MFI portfolios.
The Myanmar market has 176 licensed microfinance institutions and to date, the Pact Global Microfinance Fund accounts for about one third of the country’s total micro-loan portfolio, according to the Myanmar Financial Service report of FMR Research & Advisory.
Earlier, MBF was indirectly funded by IFC, through Yoma Bank, in a move to support the non-banking sector in Myanmar.