The International Finance Corporation (IFC), a member of the US-based World Bank Group, announced its recent equity investment of 1.2 million USD in Fullerton Finance Company Limited in Myanmar. Fullerton Finance is a micro-financing institution (MFI) that lends to micro-, small- and medium- sized enterprises (MSMEs), as well as low-income individuals living in Myanmar. The IFC acquired about 15% of the equity in the MFI that plans to utilize the investment for expansion of its lending activity in the country.
The global director for IFC financial institution group, Marcos Brujis, said, “It is important for microfinance institutions to be well capitalized, creating a strong foundation fro the necessary investment in risk management systems, staff, and product development in order to provide a full menu of products and services to underserved segments of the market.”
“We welcome IFC’s investment as Fullerton Myanmar continues its strong growth momentum. As we build a sustainable business, we are looking to help our customers grow their own enterprises. Fullerton Myanmar remains focused on adopting industry best practices and using modern technology to efficiently reach urban and rural customers in Myanmar,” says Gan Chee Yen, the chief executive officer of Fullerton Financial Holdings.
Per 2014 data, IFC reported total assets of about 84.1 billion USD with net income 1.48 billion USD and return on investments of 1.8 percent. The IFC aims to contribute in strengthening the infrastructure and private sectors in Myanmar. They have expressed their support in the goal of the government of Myanmar in the expansion of financial inclusion from only 30 percent last year to 70 percent in 2020. Unfortunately, the financial information of Capital Diamond Star Group and Fullerton Myanmar isn’t available as of the moment.
Fullerton Financial Holdings have reported 12.6 billion USD in outstanding loans, 9.7 billion USD in deposits, and 5.4% in return on equity as of 2014.