MIL.L Regulatory News (MIL)

1 September 2014

Myanmar Investments International Limited

Completion of microfinance joint venture agreement

On 26 August, 2014 Myanmar Investments International Limited ("MIL" or the "Company") announced that its wholly owned subsidiary Myanmar Investments Limited ("Myanmar Investments"), had signed a conditional joint venture agreement ("JVA") for the development of a microfinance business in Myanmar.

MIL is pleased to announce that the joint venture, Myanmar Finance International Ltd. ("MFIL"), has now received its microfinance licence from the Myanmar Microfinance Supervisory Enterprise, part of the Ministry of Finance. As such the conditions contained in the JVA have been satisfied and the JVA is now unconditional.

The joint venture is with Myanmar Finance Company Limited ("MFC"), a highly ranked provider of microfinance loans principally to small-scale business operators in rural and urban areas of Yangon and neighbouring Bago in Myanmar.

The directors of the Company believe MFIL to be the first foreign microfinance joint venture in Myanmar. MFIL has both a lending and deposit taking licence issued by the Myanmar government. In conformity with Myanmar regulations, MFIL has been incorporated in Myanmar as a foreign company. 

Under the terms of the JVA, MFC will inject its existing microfinance business into MFIL which will be jointly managed by the two partners. Myanmar Investments and MFC have agreed to an initial phased contribution of US$4.8 million in capital (Myanmar Investments' total contribution being US$2.75 million) with Myanmar Investments owning 55 per cent. of the new company and MFC holding the remaining 45 per cent.

Further details can be found in MIL's announcement on 26 August, 2014.

Following this investment, MIL has substantially implemented its investing policy in accordance with Rule 8 of the AIM Rules for Companies.

For further information please contact:

Notes to Editors:

Myanmar Investments International Limited is the first Myanmar focused investment company to be admitted to trading on the AIM market in London and has been established for the purpose of investing in businesses operating in or with business exposure to Myanmar. The Company will target businesses operating in sectors that the Directors believe have strong growth potential and thereby can be expected to provide attractive yields, capital gains or both. In addition to investing into local businesses the Company will also partner with foreign companies investing in Myanmar.

Myanmar, a country of approximately 60 million people and roughly the size of France, has been diplomatically isolated for much of the last 50 years. Once one of the more prosperous countries in Southeast Asia as it has an abundance of natural resources (oil, natural gas, arable land, tourist attractions and a long coastline), it is now one of the least developed countries in the world and has been the subject of sanctions imposed on it by the EU and the US, amongst others.

The Company's primary objective is to build capital value over the long term by making investments in a diversified portfolio of Myanmar businesses that will benefit from Myanmar's re-emergence.

About Myanmar Finance Company Limited

Myanmar Finance Company Limited was formed in 2012 in Myanmar by U Htet Nyi to provide microfinance products to local communities in Yangon and later Bago. By mid-2014, MFC had nearly 10,000 clients and an outstanding loan portfolio of around Kyat 800 million (about US$833,000).

About U Htet Nyi

U Htet Nyi, a Myanmar citizen, is a serial entrepreneur with nearly two decades of experience managing general trading and services businesses in Myanmar.

U Htet Nyi is the president of the Myanmar Shooting Sport Federation and honorary consul for Norway and Finland.

960 Kyat = US$1 (as of 29 August, 2014)

For more information about MIL, please visit www.myanmarinvestments.com