United Overseas Bank Group (UOB), one of the nine foreign banks permitted in Myanmar last
year, announced on 6th May 2015 that it is offering an onshore loan to Rangoon Excelsior Co. Ltd, a French-Myanmar joint venture, to establish a new hotel in Yangon. The Rangoon Excelsior is refurbishing a former colonial building in the center of Yangon into a five-storied hotel.
According to Mr. Ian Wong, Managing Director and Head of Strategy and International Management of UOB Group, Hospitality sector is one of the major industries the bank will be focusing on for providing loans in Myanmar. “The financing of a new hotel in Yangon is in line with our approach of sup- porting businesses that are helping to drive the development of Myanmar. As tourism is expected to be a main contributor of new jobs in Myanmar over the next decade, we are keen to partner companies such as Rangoon Excelsior in helping to build the necessary tourism infrastructure to support the growth of this sector,” Mr Wong said.
The hospitality sector in Myanmar is expected to contribute USD 14.1 billion to Myanmar’s GDP by 2030 from USD 0.6 billion in 2010 says the figures from McK- insey Global Institute. Established Myanmar branch in first week of May, UOB said they will offer trade and project financing, cash management solutions and corporate loans to regional companies and foreign clients investing to help long term economic growth of the country.
“This is a significant milestone for us and UOB has been instrumental to this project. As Myanmar transforms economically, we hope this hotel project can help preserve a piece of Yangon’s history for the tourists and the people of Myanmar. For us, Myanmar is a long-term investment and we hope to be able to work closely with UOB as we expand our business in the country,” said Ms Su Su Tin, Managing Director Rangoon Excelsior that was given the first offer by a foreign bank in the country.
UOB is planning to offer more onshore loans in hospitality, infrastructure and manufacturing sectors and help financing in establishing hotels, factories and retail shops. According to Mr. Wong, Hong Kong businesses are interested to invest in Myanmar at the top of the list with 31 percent followed by Thailand with 28 percent, Main- land China with 26 percent and Singapore with 21 percent.
UOB is also the first foreign bank to establish a FDI Advisory unit in Myanmar, permitted in 2013. United Overseas Bank Limited (UOB) is a leading bank with a global network of more than 500 offices in 19 markets in North America, Western Europe and Asia Pacific. Headquartered in Singapore, UOB operates its banking services mainly in Indonesia, Malaysia, Thailand, the Phil- ippines and China.
