Singapore, April 18, 2016
—IFC, a member of the World Bank Group, is helping to improve Myanmar’s under-developed transportation sector by providing $40 million of financing to Myanmar Industrial Port (MIP). MIP is one of two major container ports in Myanmar and a key trade gateway that handles more than 300,000 twenty-foot equivalent units (TEUs) annually or 40% of the country’s container traffic.
The $40 million in mezzanine financing is the first phase of a $200 million financing package which is expected to include $160 million in long-term senior loans to be provided by IFC and other foreign lenders. The financing package will help the company increase capacity and efficiency at its container terminal in central Yangon, the commercial capital of Myanmar. With IFC’s long-term funding, the company will be able to complete the first phase of its expansion plans which, together with the efficiency improvements, will increase the terminal’s annual handling capacity to 500,000 TEUs or more.
The investment is IFC’s first in the transportation sector in Myanmar and is part of a broader strategy to help Myanmar do business more efficiently and more competitively thereby unlocking the country’s potential for increased international trade and supporting job creation and economic development.
“Thanks to IFC’s investment, we will be able to further modernize our port operations and respond to the increasing demands of international shipping lines and local traders,” said Captain U Ko Ko Htoo, MIP’s Chairman. “We are also keen on IFC’s advice on bringing our environmental, social and governance practices
into line with international standards
.”
Myanmar’s container volumes are estimated to have increased by 90 percent over the last 3 years due to rapid growth in imports and exports following the government’s implementation of political and economic reforms.
“IFC’s financing for MIP comes at a critical time in Myanmar’s development when transport infrastructure is urgently needed to realize the country’s growth potential,” said Hyun-Chan Cho, IFC’s Head of Infrastructure and Natural Resources for Asia. “The MIP loans will also help to catalyze investment by other private developers and financiers in Myanmar’s infrastructure sector for which long-term US dollar funding has not been readily available.”
IFC, together with the World Bank, is supporting reforms and investments in Myanmar to strengthen the private sector and create jobs in order to reduce poverty and boost shared prosperity. IFC is working with the government and the private sector to improve the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power, telecommunications, and ports sectors.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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About Myanma Annwa Swan A Shin Group (S) Co Ltd
Myanma Annwa Swan A Shin Group (S) Co Ltd
(
MAS) is a leading container terminal in Yangon. MAS is growing rapidly in line with Myanmar’s container market underpinned by the country’s strong economic growth. MAS operates the port under the trading name Myanmar Industrial Port.
About Myanmar Industrial Port
Myanmar Industrial Port (MIP) is located within the port area in central Yangon city, the commercial capital, and provides container handling and stevedoring services for major international shipping lines. The Company has been operating for more than 12 years. MIP handled 278,000 twenty-foot equivalent units ("TEUs") in the fiscal year ended March 2015.
