International Finance Corporation (IFC) makes a USD 1.2 million equity investment in micro-finance provider Fullerton Finance (Myanmar) Co., Ltd to help finance smaller businesses and individual borrowers

The World Bank’s private financing arm, International Finance Corporation (IFC), has made a $1.2 million equity investment in Fullerton Finance (Myanmar) Company Limited.

The investment is to help the microfinance provider expand lending to smaller businesses and individual borrowers, IFC said.

Established in 2014, Fullerton Myanmar serves micro, small, and medium enterprises (MSME) through branches located in Yangon, Ayeyarwaddy and Mandalay regions.

The company, headquartered in Yangon’s Thaketatownship, runs a dual urban and rural microfinance program and aims to grow its customer base 20-fold from 10,000 to 200,000 by 2021.

IFC said its funding will help Fullerton Myanmar address the financial gaps by extending more loans and providing financial services to low-income borrowers and small businesses.

Myanmar’s financial system is in an early stage of development. Just 30 percent of Myanmar’s adult population has access to formal financial services. The growth financing demands from MSMEs remain high, as access to affordable long-term non-collateralised loans are extremely limited.

“As we build a sustainable business, we are looking to help our customers grow their own enterprises. Fullerton Myanmar remains focused on adopting industry best practices and using modern technology to efficiently reach urban and rural customers in Myanmar,” said Gan Chee Yen, CEO of Fullerton Financial Holdings.

With IFC’s investment, Fullerton Myanmar’s key shareholders are now Fullerton Financial Holdings, with a stake of 70 percent, local conglomerate Capital Diamond Star Group (CDSG) with a 15 percent stake and IFC with 15 percent. FFH is a wholly owned subsidiary of Singapore-based investment firm Temasek.

U KoKoGyi, managing director of Capital Diamond Star Group (“CDSG”), said, “It is our intention that FFMCL will encourage and support grass-roots level entrepreneurship and bring prosperity to Myanmar.” 

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