ACLEDA MFI MYANMAR CO LTD
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
Acleda microfinance Myanmar is the 6th largest MFI in Myanmar with 69,000 clients, targeting micro and SME entrepreneurs. Acleda Myanmar has maintained a low-cost base with 9 branches (1 new) active in 2-regions (Yangon and Bago) resulting in >8,500 customers per branch. AMM is 100% owned by long-standing partner and #1 bank in Cambodia, Acleda Bank Cambodia.
What is our funding objective?
This transaction is highly inclusive as Acleda Myanmar reaches out to the financial underserved population in peri-urban and rural areas of Myanmar, a low-income fragile state. With this USD 5mln we can support Acleda in growing its portfolio and expanding its network across a broader region.
Why do we fund this investment?
Myanmar is on the UN Least Developed Countries list and automatically qualifies for SDG 10, reducing inequalities. It is one of the poorest countries in SE Asia and is ranked 145 out of 188 in the UNDP Human Development index. The estimated unbanked population is 33 million and the potential market base for MFIs is ~30% of the population. Through Acleda Myanmar, FMO can pursue its inclusive goal, as Acleda focuses on microfinance to the financially underserved in peri-urban areas. Long-term, local currency funding in Myanmar is still scarce therefore we can fulfill a role in a financing gap.
What is the Environmental and Social categorization rationale?
Acleda Myanmar's loan book is comprised of micro and small clients, across different low-risk E&S sectors and therefore classified as a Category C client. Although they do not have a formal CPP smart campaign license in place, the CPPs are embedded in their lending procedures.
More investments
| Date | Total FMO financing |
|---|---|
| 4/9/2020 | USD 3.00 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Publication date
- 11/19/2018
- Effective date
- 12/6/2018
- End date
- 1/27/2022
- Total FMO financing
- USD 5.00 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