ACO Investment to bet $700m on Myanmar

The firm will commit $200 million to Yangon International Airport and make a $500 million bid for two telecommunications licenses as part of its new global infrastructure fund, Achuthan told Bloomberg.

"What we're looking for is a frontier market that has a tremendous amount of growth ahead of it," he said. "In the Asian markets, if you're looking for growth, we would rather look at Myanmar versus the saturated markets of Thailand or Indonesia."

Myanmar President Thein Sein is said to be clearing the way for foreign investment by speeding up the modernization of the country's financial system and infrastructure ahead the 2015 elections. In a statement released last month, the Myanmar Posts and Telecommunications Ministry said it planned to issue two telecom operator licenses by June. There are 91 potential bidders for the licenses, including Singapore Telecommunications and Malyasia's Axiata Group.

The investment in Yangon Airport may take the form of joint ventures or project financing.

ACO reached an agreement with Myanmar's Mandalay regional government last month to develop solar energy farms capable of generating 1,000 megawatts of power. The firm will invest $1.5 billion to $2 billion in the project over two years.

In other frontier markets, the private-equity firm says it is looking to invest $500 million into a solar farm project and another $250 million in wind farm project in Vietnam.

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• Topics
• Southeast Asia
• Infrastructure
• Infrastructure
• Myanmar
• Vietnam
• Infrastructure