Thitsar Ooyin Company Limited
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Thitsar Ooyin is a newly registered limited company that took over the microfinance activities that GRET had been implementing in Myanmar for more than twenty years. GRET is well-known to FMO, as it was the main founder of Amret Cambodia. Thitsar Ooyin promotes financial inclusion in Chin State and Sagaing Region with a particular focus towards rural areas to the benefit of poor disadvantaged community. The MFI uses group-lending methodology, but it also provides individual loans to previously successful group borrowers. Thitsar Ooyin currently has a loan portfolio of USD 3.2 mln and serves 20,552 clients of whom 90 % live in rural areas.
What is our funding objective?
This transaction comprises the equivalent USD 1m (+1m limit) senior unsecured debt in LCY to Thitsar Ooyin to support the institution in its future loan growth plans. Thitsar Ooyin provides loans to clients, about 74% women, in poor and remote areas of the Myanmar, a low income country. Proceeds of loans are for livestock, production and services and the rest is for cultivation.
Why do we fund this investment?
Through this investment, FMO is able to pursue its inclusive goals and geographically diversify its presence in Myanmar. FMO will be the second foreign lender in Thitsar Ooyin. It fits the MASSIF strategy, as the transaction is for the unbanked, in Myanmar, a low-income country and a fragile state, and it serves the agri/rural clients. Local currency funding to international MFIs in Myanmar remains scarce therefore this transaction is highly additional to Thitsar Ooyin.
What is the Environmental and Social categorization rationale?
Thitsar Ooyin is an Environmental & Social C category client, given that 100% of its loan portfolio is used to finance small-scale agribusiness and microbusinesses. E&S risks are limited and therefore no ESAP is applicable. Thitsar Ooyin is in compliance with the national law and they adhere to FMO’s Exclusion List.
More investments
| Date | Total FMO financing |
|---|---|
| 7/21/2020 | EUR 0.08 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Publication date
- 11/6/2018
- Effective date
- 11/5/2018
- End date
- 9/20/2022
- Total FMO financing
- USD 1.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C