38031 - Maha MicroFinance

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Summary of Investment Information

Project Number

38031

Company Name

MAHA AGRICULTURE PRIVATE COMPANY LIMITED

Date SPI Disclosed

Apr 13, 2016

Country

Myanmar

Region

East Asia and the Pacific

Projected Board Date

Feb 2, 2017

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Oct 26, 2020

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Feb 2, 2017
Signed : Jun 21, 2017
Invested : Sep 28, 2018

Sector

other

Project Description

The proposed project is to support Maha Agriculture Public Company Ltd (“Maha” or the “Company”) through a participation in the Company’s Rights Issue.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.0
Equity	1.50

Development Impact

- Access to finance: Maha's introduction of a suite of financial products and services will improve financial inclusion of the country's under and unserved segments of the market - Use of technology: Maha's use of technology will facilitate business operations and help reach more customers in rural low income households by making the credit appraisal process more efficient, effective and user-friendly - Private sector development: IFC's funding will support a private-sector enterprise in a country dominated by public-sector players

- IFC's provision of long-term local currency financing, in a regulatory environment that prohibits foreign-currency borrowing will help Maha in its path to establishment and growth, and avoid any currency mismatches - IFC's expertise in supporting early-stage MFIs, and its global knowledge of Microfinance, will help Maha in developing appropriate policies and procedures and general growth.

E&S Category Rationale / Risks and Mitigation

The proposed project consists of IFC’s equity investment in Maha including a follow-on investment through Rights Issue. Maha is a microfinance institution in Myanmar and provides microloans to Myanmar’s rural populations, supporting mostly agriculture, retail and other microscale business activities in the country. Maha is not exposed to coal related activities. The environmental and social (E&S) risks and impacts associated with Maha’s lending activities are considered low. Therefore, the project has been categorized as a Category FI-3 in accordance with IFC Environmental and Social Sustainability Policy. The applicable E&S performance requirements of the project include the compliance with IFC Exclusion List extended by additional “no-go activities” and Myanmar’s E&S laws and regulations where they exist and are applicable. Maha has assigned E&S roles as well as established a simple environmental and social management system (ESMS). Maha will be required to continue implementing the ESMS and retain E&S responsibilities to ensure compliance with the applicable E&S requirements. Maha’s own HR management and practices in place are generally in line with IFC Performance Standard 2 Labor and Working Conditions.

Contacts

For Inquiries About the Project, Contact

MAHA AGRICULTURE PUBLIC COMPANY LIMITED
Mr. Matteo Marinelli
Chief Executive Officer
+95 9 40729 3320

95-A Kyaik Wine Pagoda Road, Mayangone Township, Yangon Myanmar
www.mahaagriculture.com

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