OPIC initiates $250m loan for Myanmar's Apollo Towers

Apollo is a joint venture between TPG Capital's growth unit, Tillman Global Holdings and London-listed investment group Myanmar Investments International. According to a statement, these investors will facilitate the OPIC loan process and support Apollo's use of the incoming capital to expand its infrastructure in Myanmar.

The company's network comprises about 1,800 towers and is expected to expand by more than 2,000 additional towers in its next phase of development. Since the company began its tower installation program in 2014, Myanmar's mobile phone penetration rate has improved from 5% to more than 75%.

Current telecommunications infrastructure in the country, however, represents only about half of the target set by the three largest local network operators. This broader $336 million installation project is expected to underpin follow-on economic developments - particularly among small and medium enterprises and entrepreneurs - as well as reduce barriers to finance and health care.

"It's an incredibly exciting time in Myanmar, and there is tremendous opportunity for investment," said Thura Ko, managing director of Myanmar-based YGA Capital and senior advisor to TPG. "The advantage Myanmar has in having a late start, in terms of building infrastructure, is that we can develop in a way that is smart, efficient, and in collaboration with the right partners."

TPG invested in Apollo in 2014 and demonstrated further interest in Myanmar last year when its TPG Capital Asia division bought a 50% stake in regionally leading brewer Myanmar Distillery Company Group. Myanmar Investments first backed Apollo in 2015 by leading a $30 million equity investment. It currently has a 9.3% indirect holding in the company.

 

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• Topics
• Southeast Asia
• Infrastructure
• Support services
• Expansion
• Myanmar
• Overseas Private Investment Corporation (OPIC)
• TPG Capital
• Growth capital