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Supporting a key microfinance institution in Burma
Project
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Signature date
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Location
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Burma
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Financing tool
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Financing amount (Euro)
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3514629.65
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Financing details
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Loan of MMK 6,081,600,000 (USD 4m)
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Customer
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LOLC Myanmar Microfinance Ltd.
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Type of customer
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Microfinance
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Country of headquarters
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Burma
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Project number
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PMM1003
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
LOLC Myanmar is one of the leading microfinance institutions in Burma. This financing is supporting an MFI with responsible practices and is contributing to the financial inclusion of microentrepreneurs and vulnerable populations, in a country where financial inclusion is still low.
Client presentation
LOLC Myanmar obtained a microfinance license in 2013 and is today one of the 10 leading microfinance institutions (MFI) in the country. It is present in three regions (Yangon, Bago and Mon).
LOLC Myanmar is the subsidiary of the Sri Lankan group Lanka Orix Leasing Company Plc (LOLC Plc) and is responsible for microfinance activities in Burma.
Project description
The project involves the allocation of a senior credit line for an amount equivalent to USD 4m in local currency (via TCX) to the Burmese microfinance institution LOLC Myanmar in order to support the development of its loan portfolio.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
This operation is supporting an MFI with responsible practices, in a country where financial inclusion is still low.
On the economic front, the project will contribute to the financial inclusion of vulnerable populations. Its clients are all microentrepreneurs, working in the sectors of trade (63%), services (22%), agriculture (12%) and industry (2%).
At the social level, the project will support employment and training for local communities. The project is expected to employ an additional 1,000 people over the next 3 years, including 77% of women. Finally, PROPARCO’s financing should support over 37,000 indirect jobs (e.g. with the MFI’s clients).