YOMA STRATEGIC HOLDINGS LTD
Who is our client
Yoma Strategic Holdings (“YSH”) is one of the leading conglomerates in Myanmar. Over the last 10 years, YSH has built a diversified portfolio of businesses in Myanmar through organic growth and in close cooperation with established international partners. The Company’s four core business divisions are Real Estate, Automotive & Heavy Equipment, Consumer and Financial Services, along with a portfolio of investments.
To finance the import of tractors and implements for the expansion of YSH’s agri-equipment business under the business division “Automotive & Heavy Equipment”.
Why we fund this project
By investing in this transaction, FMO will support the increase in crop productivity and agricultural mechanization in the country. Moreover, FMO intends to organize training for farmers on GAP and agricultural mechanization. Finally, long-term funding is hardly available in Myanmar
Environmental and social rationale
YSH is a category B client. FMO’s preliminary environmental and social review indicates that FMO’s financing will have limited E&S impact. The relevant Performance Standards to this investment include - PS 1: Assessment and Management of Environmental and Social Risks and Impacts; - PS 2: Labour and Working Conditions and PS 3: Resource Efficiency and Pollution Prevention. FMO will periodically review the project’s compliance with the Performance Standards. Given that FMO will finance the sale and distribution of tractors and implements, the following PS do not apply; - PS 4: Community Health, Safety and Security; - PS 5 Land Acquisition and Involuntary Resettlement; - PS 6 Biodiversity Conservation; PS 7 Indigenous People and - PS 8 Cultural Heritage.
|Date||Total FMO financing|
|10/22/2019||USD 5.30 MLN|
|10/22/2019||USD 4.70 MLN|
|10/29/2018||USD 8.00 MLN|
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 17.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)