Dec 17, 2014

MIIL Raises Nearly $4 Million for More Myanmar Investments

Myanmar Investments International Ltd (MIIL), an AIM-quoted Myanmar focused investment company, said it has raised $3.79 million through a share subscription by some existing shareholders to use it for further investments in Myanmar and for general working capital.

The firm raised $3,797,850 via a subscription of 3,617,000 new ordinary shares at a subscription price of $1.05 per share.

“The company is looking at a number of potential investment opportunities in Myanmar in, for example the manufacturing, healthcare, education and telecommunications sectors,” it said in a bourse announcement.

MIIL said that it has also issued warrants in the ratio of one subscription warrant for every one ordinary share subscribed for as part of the Subscription.

Source: Myanmar Business Today

Dec 16, 2014

Yoma Strategic receives S$131m loan from ADB for Myanmar investments

The Asian Development Bank (ADB) on Tuesday (Dec 16) approved the loan of up to US$100 million (S$131 million) to Singapore-listed Yoma Strategic Holdings to aid in the improvement of infrastructure in Myanmar.

The ADB loan will meet the gap for long-term commercial debt for infrastructure designed to enhance connectivity, according to the joint ADB-Yoma press release. It will be disbursed in two tranches, with Yoma Strategic engaging partner companies to work with it on individual infrastructure sub-projects.

The first tranche will be used to build telecommunication towers, develop cold storage logistics, and modernise vehicle fleet leasing; the second will fund sub-projects in transportation, distribution, logistics and other sectors.

Mr Christopher Thieme, a Director in ADB’s Private Sector Operations Department, said: “Investment in connectivity infrastructure is a key factor in creating better access to economic opportunities, reducing costs, promoting trade, and attracting private investment into diverse geographic areas and sectors.

"ADB is delighted to be supporting this important work with Yoma Strategic that will help acceleration of Myanmar's growth.”

According to the press release, Myanmar is one of the least-connected countries in the world in terms of telecommunication, transportation and logistics. For instance, the road density in Myanmar is less than one fifth the average in ASEAN countries. The country’s inland waterways network, which is important for freight traffic, is also underutilised due to an ageing fleet of vessels and neglected ports facilities, it added.

Yoma in October announced it had clinched the franchise to open the first KFC fast food restaurant in Myanmar. It also has property, agriculture, tourism, automative and retail business in the country.

Source: Channel NewsAsia

Dec 15, 2014

IFC Myanmar investment to rise to $1 bln in three years

Investment by the International Finance Corporation (IFC) in Myanmar is expected to rise to $1 billion over the next three years as it supports the development of the private sector, the backbone of growth and job creation, it said on Friday.

"Building business-enabling infrastructure and expanding access to finance are critical to reviving Myanmar's private sector, which will generate much-needed jobs and economic opportunities," Vivek Pathak, the IFC's director for Asia Pacific, said in a statement.

The IFC, a member of the World Bank Group, said its focus would be on sectors such as power, telecommunications and transport. Only about 30 percent of households in Myanmar have access to electricity.

The IFC said its investment portfolio was expected to reach about $400 million for the 2015 fiscal year, ending on June 30, 2015, up from $92 million as of November 2014.

"Investments are expected to further rise to $1 billion over the next three years," it said.

It said that on the regulatory level, a focus during this fiscal year would be on supporting Myanmar's central bank to develop at least one credit bureau by June 2016.

That would allow "lenders to access borrowers' credit history, better evaluate loan risks, and thereby extending loans more quickly and on a larger scale than currently where too little information makes banks reluctant to lend".

Source: Reuters

Vietnam's Viettel nears deal to invest $800 mln in Myanmar telecoms

Vietnam's Viettel Global and Myanmar's state-backed Yatanarpon Teleport are awaiting approval for an investment of at least $800 million to build Yatanarpon's telecoms infrastructure in Myanmar, officials from both companies said on Friday.

Myanmar - where communications were tightly controlled by the former military junta - is one of the world's last telecoms frontiers, with just a small minority of the 53 million population having a mobile phone.

Last month Viettel Global, the investment arm of Vietnam's military-run Viettel Group, announced plans to contribute $800 million to developing telecoms with an unnamed partner in Myanmar, and told Reuters on Friday it will likely announce the decision of its shareholders on Dec. 15.

An official in Hanoi with direct knowledge of the negotiations confirmed that Yatanarpon was the Myanmar partner.

Yan Win, a member of Yatanarpon's board of directors, told Reuters the board had finalised talks with Viettel and was waiting for Yatanarpon's management to approve the deal.

The total investment for the deal will rise to between $1.8 and $2 billion, said the official in Hanoi who declined to be identified because he is not authorised to speak to the media.

Viettel Global said the additional funds would be raised by its foreign partner and a joint venture, to be established by both firms, the Vietnamese company said in the plan published in November.

Aung Tha, CEO of Khine Thit Sar, a Yangon-based company helping to upgrade the state-owned Myanmar Posts and Telecommunications (MPT), said he was aware of talks between Viettel and Yatanarpon, which has primarily been an Internet service provider until now.

"It will be tough for them to compete with the existing operators," he said. "They have no infrastructure, they will have to start from scratch."

Swedish telecoms giant Ericsson said that in 2012 less than 4 percent of the country's population had mobile phones.

That number has risen dramatically over the past few months as Norway's Telenor and Qatar's Ooredoo have begun selling SIM cards after the reformist government, which took power in 2011, granted the companies telecoms licences.

MPT, formerly the country's sole provider, has also scaled up distribution of SIM cards and has partnered with Japanese firms KDDI Corp and Sumitomo Corp, which have said they will invest $2 billion.

Yatanarpon reportedly holds the fourth telecoms licence and its chief executive told Reuters last year that it would seek at least $1 billion from investors to expand its operations.

Source: TUOI TRE NEWS

EU launches Euro Chamber Myanmar

The European Union officially launched the European Chamber of Commerce in Myanmar or Euro Chamber on December 12.

The Euro Chamber will be set up by a consortium led by the French Myanmar Chamber of Commerce and Industry along with Eurochambres, the European umbrella organization of chambers of commerce. The venture is supported by other key EU business representatives in Myanmar and the Union of Myanmar Federation of Chambers of Commerce and Industry or UMFCCI.

The EU is supporting the startup with a grant of 2.7 million euro.

Speaking at the launch ceremony at the Chatrium Hotel in Yangon, Mr Roland Kobia, Ambassador of the European Union said businesses need a stable and peaceful environment to prosper. And in turn, if they prosper, they can make a huge contribution to social and economic development.

He said they can reinforce links between Myanmar businesses and their European counterparts and grant new opportunities for both sides.

Bilateral trade between Myanmar and Europe has increased 44 percent for the first seven months of 2014 compared with the same period the previous year, a real improvement, he said.

Negotiations for an EU-Myanmar Investment Protection Agreement were launched in March 2014. The agreement is intended to improve the protection afforded to investors of both parties and to contribute to attracting investment in Myanmar and the EU by ensuring that they will be treated fairly and on an equal footing with other investors.

U Set Aung, vice-governor of the Central Bank of Myanmar, speaking at the event, said Myanmar’s economic situation is not yet perfect.

“This is normal. We also have challenges, both internal and external. Internal challenges include human resource capacity, financial capacity, and infrastructure. But these problems are everywhere, in almost all countries in the region,” he said.

“What are we doing is to solve the problems and to create a favourable stable macroeconomic climate with the hope to attract many European businesses,” U Set Aung said.

Professor Aung Tun Thet, a President’s Economic Advisor, said the rate of foreign direct investment flowing into the country from Europe is good, and they are meeting planned targets.

He admitted that there are problems with weak institutions and process delays, as well as concerns over finance, technology, management and leadership skills, and good corporate governance.

He said the motto was “do well, also do good” for the business community in Myanmar.

Mr Julien Esch, president of the French Myanmar Chamber of Commerce and Industry, said, “We love Myanmar because Myanmar is Myanmar and not because it is situated between India and China.”

Source: Mizzima

Oil India signs contract for two oil blocks in Myanmar

Oil India Ltd, the second largest state explorer, has signed a contract for two offshore oil and gas blocks it had bagged in Myanmar. OIL along with its consortium partners signed Production Sharing Contract (PSC) with Myanma Oil and Gas Enterprise (MOGE) for two offshore blocks M4 and YEB at Nay Pyi Taw, the company said.

OIL-led consortium won these blocks under Myanmar offshore bidding round 2013 which was launched on April 11, last year. A total of 30 blocks (11 shallow water and 19 deepsea) were put on offer in this bidding round.

OIL and partners bid for three offshore blocks M-4, M-8 and YEB and won two of them. OIL is the operator with 60 per cent interest in both the blocks. Other consortium partners are Mercator Petroleum Ltd (25 per cent), Oilmax Energy Pvt Ltd (10 per cent), and Oil Star Management Services Co Ltd (a local company of Myanmar with 5 per cent stake).

Block M-4 with an area of 4,008 square miles in water depth of less than 600 feet is located in Moattama Basin, while other block YEB with an area of 8,223 sq miles in water depth of less than 600 feet is located in Thanintharyi Basin.

OIL general manager (business development) P K Sharma signed the PSC while MOGE managing director U Myo Myint OO signed the contract on December 4. - See more at: http://indianexpress.com/article/business/companies/oil-india-signs-contract-for-two-oil-blocks-in-myanmar/#sthash.0kl5nG7K.dpuf

Dec 10, 2014

Keppel Land to Pay $47.4 Million for Myanmar Venture

Singapore-based Keppel Land Ltd said it will buy a 40 percent equity stake in a company developing an office tower in Yangon for $47.4 million. Keppel Land will initially contribute $200,000 and later a further $47.2 million for the stake in City Square Office Co, the SGX-listed real estate developer said. The rest of the company will be held by local firms Shwe Taung Junction City Development Co and City Square Development Pte Ltd. The joint venture firm will develop an office property on a 6.5 acre site on Bogyoke Aung San Road and Shwedagon Pagoda Road in the Pabedan township in Myanmar’s commercial hub. The total development cost of the project is estimated at $118.5 million, Keppel Land said. Source: Myanmar Business Today

 
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