Asian firms increase footprint with Myanmar MFI expansion
Thai-listed firm Group Lease has brought a majority stake in BG Microfinance Myanmar, with plans to invest almost US$7 million into the business and ramp up the number of branches. Korean credit card firm Shinhan Card, meanwhile, is preparing to start its own microfinance services this month. Group Lease has bought almost 72 percent of BG Microfinance from Sri Lankan financial group Commercial Credit & Finance, which will hold the other 28pc. The Sri Lankan group set up BG Microfinance in 2014 and received a permanent licence in 2015. The lender has 9800 customers and a portfolio of group loans – to groups of five individuals – amounting to around US$1.5 million, GL said. But GL chair Mitsuji Konoshita said that Sri Lankan authority restrictions on capital outflows from that country had prevented BG Microfinance from increasing its portfolio, which Mr Mitsuji is expecting to reach $30 million to $40 million in the year following GL’s acquisition.
