Yoma receives $130m ADB loan for infrastructure plans in Myanmar

Telco line penetration in the country is a measly 4%.

The Asian Development Bank (ADB) has approved a loan of up to US$100 million to Singapore-listed Yoma Strategic Holdings Ltd. (Yoma Strategic) to improve infrastructure connectivity needed for sustainable economic growth in Myanmar.

“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 Christopher Thieme, a director in ADB’s Private Sector Operations Department.

Myanmar is one of the least-connected countries in the world in terms of telecommunication, transportation, and logistics. In 2012, fixed and mobile telecommunication line penetration rates stood at less than 1% and 7% of the population, respectively. The road density in Myanmar is less than one fifth the average in ASEAN countries. The country’s inland waterways network, which is important for freight traffic, is also underutilized due to an ageing fleet of vessels and neglected ports facilities.

The ADB loan will meet the gap for long-term commercial debt for infrastructure designed to enhance connectivity. It will be disbursed in two tranches, with Yoma Strategic engaging partner companies to work with it on individual infrastructure subprojects. The first tranche will be used to build telecommunication towers, develop cold storage logistics, and modernize vehicle fleet leasing; the second will fund subprojects in transportation, distribution, logistics and other sectors.

“It is a privilege to be chosen by ADB as a partner to work on improving Myanmar’s infrastructure,” said Serge Pun, Executive Chairman of Yoma Strategic. “ADB’s loan will help support our goal of improving the country’s connectivity, which in turn will strengthen local markets, boost productivity, and create jobs.”