MAHA AGRICULTURE PUBLIC COMPANY LIM
Status: Approved 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
Maha Agriculture Microfinance is a young microfinance institution, focused on agriculture in rural Myanmar. Maha was registered in 2013, started operations in 2014 and grew substantially to serving 21,920 customers with an asset base of MMK 14.4bn (USD 9.15mln as of November 2018). The key shareholder is AWBA (est. 1995), is a leading local provider of crop protection products, fertilizers and seeds in Myanmar.
What is our funding objective?
The intended USD 3mln in MMK equivalent will support Maha in reaching out to its farmers and small business owners in rural Myanmar. With this funding Maha can realize its growth ambitions in a challenging market where funding is scarce.
Why do we fund this investment?
This transaction is highly inclusive, with a strong strategic fit with MASSIF and FMO. Maha focuses on farmers (the agriculture sector represents 36% of GDP and employs 60% of the population, in rural areas (70% of population lives in rural areas). They provide microfinance in Myanmar, a fragile state and one the poorest countries in SE Asia and it is classified as a UN LDC.
What is the Environmental and Social categorization rationale?
Maha is an E&S 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. Maha is in compliance with the national law and they adhere to FMO’s Exclusion List.
More investments
| Date | Total FMO financing |
|---|---|
| 7/27/2020 | USD 3.00 MLN |
| 1/23/2020 | EUR 0.08 MLN |
- Region
- Asia
- Country
- Myanmar
- Sector
- Financial Institutions
- Publication date
- 11/30/2018
- Effective date
- 1/31/2019
- Total FMO financing
- USD 3.00 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