MIL.L Regulatory News (MIL)

1 November 2016

Myanmar Investments International Limited

MFIL secures US$1 million loan from Maybank

Myanmar Investments International Limited ("MIL" or the "Company"), the AIM-quoted Myanmar focused investment company, is pleased to announce that Myanmar Finance International Limited ("MFIL"), the Company's microfinance joint venture, has signed a US$1 million, local-currency denominated loan agreement with Malayan Banking Berhad ("Maybank"), the only Malaysian bank to be granted a banking license from the Central Bank of Myanmar.  

MFIL is a joint venture between MIL (37.5%), Myanmar Finance Company Limited (37.5%) and the Norwegian Investment Fund for Developing Countries ("Norfund") (25%), with total paid up capital of nearly US$ 5 million.

MFIL will use the proceeds from the loan to further increase its outreach and expand its loans portfolio, which has grown from approximately 10,000 borrowers and 800 million kyats, when MIL initially invested in MFIL in September 2014, to over 38,000 borrowers and 6.5 billion kyats (US$ 5.1 million at current exchange rates) as of September 2016; a CAGR of 95% and 185% respectively. MFIL is also considering launching new products which remain targeted at lending to economically-active households to improve their standards of living. Currently MFIL has 6 branches and plans to add a further 4 branches in this coming year.

Aung Htun, the Company's Managing Director said, "MFIL is profitable and has experienced strong growth since MIL entered into the joint venture. We are pleased that MIL has been able to bring its expertise in capital markets and fund raising to assist MFIL in securing this loan to continue to fuel MFIL's growth. This loan is only the first of a series of further debt financing initiatives that are planned for MFIL in the coming years, as MFIL continues to consolidate its position as one of the leading microfinance operators in Myanmar, and we are delighted to partner with Maybank for MFIL's first facility."

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Notes to Editors:

Myanmar Investments International Limited ("MIL") is the first Myanmar-focused investment company to be admitted to trading on the AIM market of the London Stock Exchange. It was established in 2013 to act as a conduit for overseas investors to invest in businesses led by dynamic and visionary Myanmar entrepreneurs and foreign companies investing in the country. MIL is led by co-founders Aung Htun and Mike Dean, private equity professionals and entrepreneurs with a strong regional track record of investment and profitable exits in SE Asia.

MIL aims to identify investments with strong growth which if necessary can be "de-risked" through the introduction of experienced senior line-management, mentors and/or strategic partners sourced by its Founders. Key sectors are those experiencing acute supply vs. demand imbalances, such as consumer and other capacity-constrained sectors.

With its strong proprietary investment pipeline of deals, MIL provides investors with a highly disciplined and conservative investment process into one of the most promising growth opportunities of this era.

To date, MIL has invested in Apollo Towers, one of Myanmar's top telecom towers companies with 1,800 towers, and MFIL, a top 10 microfinance company.

Myanmar, a country of approximately 51.4 million people and roughly the size of France, has been isolated for much of the last 50 years. Once it was 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.

Following the general elections in Myanmar in November 2015 the National League for Democracy, led by Daw Aung San Suu Kyi, won an overwhelming majority of the seats and the new administration took power on 1 April 2016.

In October 2016 the United States government lifted all remaining sanctions against Myanmar and re-admitted the country into its preferred tariff system.

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

About Myanmar Finance International Limited

Myanmar Finance International Limited was formed in 2014 in Myanmar as a joint venture between Myanmar Investments Limited and Myanmar Finance Company Limited to provide microfinance products to local communities in Yangon and Bago. In 2015, the Norwegian Investment Fund for Developing Countries became an equity shareholder in MFIL. MFIL has total paid up capital of nearly US$ 5 million.

As of 31 September 2016, MFIL has 6 branches, with over 38,000 clients and an outstanding loan portfolio of over Kyat 6.5 billion (US$5.1 million at current exchange rates).

(1 USD = 1,285 MMK as at 31 October 2016)