I nternational Finance Corporation (IFC), the World Bank’s private financing arm has invested $1.2 million in Fullerton Finance Myanmar Company. This is IFC’s second investment in a greenfield microfinance institution. FFMC’s key shareholders are Fullerton Financial Holdings (FFH) with 70 percent of shares, local conglomerate Capital Diamond Star Group (CDSG) with a 15 percent and IFC with 15 percent. FFH is a wholly owned subsidiary of Singapore-based investment firm Temasek. The investment of IFC is to support the microfinance provider expand lending to small businesses and individual borrowers. Fullerton Myanmar was established in 2014 and serves micro, small, and medium enterprises (MSME) through branches located in Yangon, Ayeyarwaddy and Mandalay regions. The company headquartered in Yangon’s Tharkayta Township that runs a dual urban and rural microfinance program. It aims at growing its customer base 20-fold from 10,000 to 200,000 by 2021.
IFC said that Myanmar’s financial system is in an initial development stage. Its funding will help Fullerton Myanmar to address the financial gaps by extending more loans and providing financial services to low-income borrowers and small businesses. Only 30 percent of Myanmar’s adult population can access to formal financial services. As access to affordable long-term non-collateralized loans are extremely restricted, the increased financing demands from MSMEs remain high.
Marcos Brujis, IFC Global Director for Financial Institutions Group also shared, “Well capitalization is essential for microfinance institutions, creating a strong foundation for the necessary investment in risk management systems, staffs, and product development in order to provide all kinds of products and services to underserved segments of the market.”
Mr. Gan Chee Yen, CEO of Fullerton Financial Holdings said, “As we build a sustainable business, we can help our customers to grow their own enterprises. Fullerton Myanmar remains focused on adopting industry with best practices and using modern technology to effectively reach urban and rural customers in Myanmar.”
U Ko Ko Gyi, Managing Director of Capital Diamond Star Group (CDSG), said, “Our purpose is to encourage, support grass-roots level entrepreneurship and bring prosperity to Myanmar.”