35424 - MOB Equity

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Summary of Investment Information

Project Number

35424

Company Name

THE MYANMAR ORIENTAL BANK LIMITED

Date SPI Disclosed

Mar 19, 2015

Country

Myanmar

Region

East Asia and the Pacific

Projected Board Date

Apr 20, 2015

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Nov 9, 2024

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Jun 23, 2015
Signed : Aug 19, 2015
Invested : Nov 12, 2015

Sector

Commercial Banking - General

Project Description

Myanmar Oriental Bank (“MOB” or the “Bank”) is one of the first established private banks in Myanmar. The Bank commenced business in 1993 and is the first private bank in Myanmar to obtain international banking license. Today its focused customer base is small to medium enterprises.

IFC’s investment will provide MOB with long term funding to allow the Bank to capitalize on new lending opportunities, which will ultimately increase access to finance to SMEs in Myanmar.

Associated Advisory Engagement

IFC’s investment is integrated by a package of advisory services designing to support the growth and development of the Bank, and help the Bank absorb and implement skills as well as operational changes in a sustainable manner.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Quasi-Equity	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

1) IFC investment will contribute to the development of the financial sector in Myanmar which is at present being restrained by limited access to financial services for the private sector, especially for SMEs.
2) Engaging with MOB will help alleviate this constraint for the underserved sectors, supporting development of good credit culture at local banks and creating market demonstration effect for good banking practices.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

Categorization and E&S Categorization Rational:

The Project has been categorized as FI-2 in accordance with IFC's Environmental and Social Review Procedure. MOB's commercial lending is primarily focused on MSMEs and exposed mostly to trading and manufacturing sectors. MOB's subsidiary OLCL provides lending for acquisition of consumer durables such as automobiles and electronic products. The commercial activities supported by the Project therefore entail limited adverse E&S risk and impact that are few in number, generally site-specific, largely reversible and can be readily addressed through mitigation measures. Applicable performance requirements for the bank's lending activities include compliance with IFC extended Exclusion List and national E&S laws and regulations accompanied by screening against and application of good international industry practices as defined in the relevant World Bank Group Environment Health and Safety Guidelines.

Main E&S Risks and Impacts of the Project:

The key E&S risks and impacts of the Project derive from the E&S risks and impacts of MOB's lending activities, and its capacity and system in place to manage these risks. As set below in the Mitigation Measures for the Project, MOB will be required to establish an Environmental and Social Management System (ESMS) consistent with IFC Performance Standard 1, outlining a policy, responsibilities, operational manual and procedures and monitoring for undertaking E&S risk management for its commercial lending activities. MOB will be required to appoint an E&S officer to oversee the development and operation of the ESMS. MOB and its subsidiary were found being generally in line with IFC Performance Standard 2 Labor and Working Conditions for their own operations.

Task Title & Description	Actual Due Date	Status	Comments	Completion Date
Nominate officers		Completed
Establish SEMS		Completed
Staff Training		Completed
Other1 Internal grievance mechanism and fire safety audit		Completed

Contacts

For Inquiries About the Project, Contact

Mr. Than Win
Executive Director
Myanmar Oriental Bank Limited
No. 166-168 Pansodan Street
Kyauktada Township, Yangon
Myanmar
Telephone: +951246594~96
Email: mailto:thanwin@mobmyanmar.com

For Inquiries and Comments About IFC, Contact

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2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

N/A

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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