Yoma Strategic Holdings Company’s Executive Chairman U Thein Wai told media that the company will use the first batch or $50 million of the loan of US$100 million from the ADB for three sectors, namely building mobile phone telecommunications towers, developing cold storage logistics and modernizing various vehicles leasing schemes.
U Thein Wai was speaking at the signing ceremony of the ADB and Yoma Strategic Holdings Company held at Sule Shangri-La Hotel in Yangon on December 16.
“Receiving ADB’s loan leads to good situation for the Yoma group. A local [domestic] company is not allowed to directly receive foreign loans, so we received the loans as a Singapore-listed company, Yoma Strategic Holdings,” he said.
Mr Christopher Thieme, director of ADB's private sector operations management, has said that the ADB will give Yoma Strategic Holdings the loans in two batches, $50 million in each batch, but it preferred not to comment on the interest rate.
“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,” said Mr Thieme in a press release. “ADB is delighted to be supporting this important work with Yoma Strategic Holdings that will help acceleration of Myanmar's growth.”
U Thein Wai said his group has already conducted businesses in these three sectors and will use the money to improve the ventures
The second batch of the loan, US$50 million, will be invested in projects related to transportation, distribution, logistics and other sectors.
In related news, First Myanmar Investment Company or FMI has made efforts in order to increase its share holdings in Yoma Bank to 51 percent this year, FMI chairman U Thein Wai told Mizzima at the ADB signing ceremony.
Currently, FMI Company owns 37 percent of Yoma Bank shares, and it wants to increase its share holdings in order to increase the banking activities of Yoma Bank, according to U Thein Wai.
FMI Company was set up in 1992 as one of Myanmar’s public companies, and it has 6,693 domestic shareholders. The company’s total assets are currently valued at K73 billion.