GIC, Norfund invest Myanmar's Yoma Bank

The transaction, which comes one year after Myanmar opened its banking sector to foreign investors, will reportedly deliver GIC a 20% stake, while Norfund will hold 10%. The International Finance Corporation (IFC), an existing investor, will see its interest lowered from 5% to 4%.

“Post the introduction of the new investors, we will be the best capitalized local bank in Myanmar,” Yoma CEO Dean Cleland told Bloomberg. “One of the best things we get out of GIC is their experience across the regions. They’re in many different businesses, they see many different business models and have experience in all kinds of things.”

Yoma is one of the largest banks in Myanmar with 80 branches in 43 cities. The bank claims to be the first lender in the country to have a computerized accounting system, which facilitates the most efficient remittance service locally. It became the first Myanmar bank to receive international investment in June last year, when IFC converted a $5 million loan into equity.

Yoma Bank is part of Singapore-listed conglomerate Yoma Strategic Holdings, which is active in areas such as telecom and financial services, as well as restaurant operation. The bank’s net income increased 65% during the twelve months to March 2019 to MMK80.7 billion on the back of strong growth in both loans and deposits. Profit improved 19% during the year to about MMK18.7 billion.

Essential social infrastructure in Myanmar has proven an attractive area for private equity investors seeking to access the country’s strong economic performance, which has seen annual GDP growth rates range from 6% to 7% for the past several years. Recent activity includes UK-based development finance institution CDC Group making its first direct equity investment in the country by providing $30 million to an internet services provider.

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• Topics
• Southeast Asia
• Expansion
• Financials
• Myanmar
• GIC Private
• Financial Services