MICROCAPITAL BRIEF: IFC Invests $7.5m in Debt, Equity in Microfinance Institution Maha Agriculture of Myanmar

The International Finance Corporation (IFC), a member of the World Bank Group, recently invested USD 6 million in debt and USD 1.5 million in equity in Maha Agriculture Public Company Limited, a microfinance subsidiary of Myanma Awba Group <http://www.awba-group.com/>, an agrochemical fertilizer company in Myanmar.Founded in 2013, Maha Agriculture has been receiving advisory services from IFC since November 2015 for the early development of the company. An IFC document states in its disclosure that “The objective of this ongoing phase is to scale Maha’s innovative rural finance business, building on and operationalizing the strategic business plan”. In early 2016, IFC had committed USD 10 million to Myanma Awba Group <http://www.awba-group.com/> to expand its agribusiness and microfinance operations.

By Imke Herholdt, Research Associate

About Myanma Awba Group <http://www.awba-group.com/>
Established in 1995, Myanma Awba Group focusses on importing, manufacturing, formulating, selling and distributing agricultural chemicals and seeds in Myanmar. The Group’s primary shareholder, founder and managing director is Thadoe Hein. Its business units include Myanma Awba Agrochemical, logistics provider Piti Pyae Sone Company Limited, Ayeyarwaddy Seeds, Myanma Awaba Fertilizers, Myanmar Pesticides Industries Co Ltd and its microfinance business Maha Agriculture Public Company Limited. No financial information on the organization has been made available.

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a US-based member of the World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of year-end 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same year, IFC reported total assets of USD 87.5 billion, net income of USD 445 million and return on average assets of 0.5 percent.

Sources and Additional Resources

[1] Deal Street Asia: IFC to invest $7.5m in Myanma Awba unit Maha Agriculture

[2] MicroCapital Universe Profile: International Finance Corporation (IFC)

[3] IFC: Myanma Awba Group Company Limited

[4] Consult-Myanmar: IFC Pledges US$10 Million to Agri-Business Myanma Awba

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