MAHA AGRICULTURE PUBLIC COMPANY LIM
Who is our client
Maha Agriculture Microfinance is a young microfinance institution, focused on agriculture in rural Myanmar. Maha was registered in 2013, started operations in 2014 and grew substantially to serving 21,920 customers with an asset base of MMK 14.4bn (USD 9.15mln as of November 2018). The key shareholder is AWBA (est. 1995), is a leading local provider of crop protection products, fertilizers and seeds in Myanmar.
The intended USD 3mln in MMK equivalent will support Maha in reaching out to its farmers and small business owners in rural Myanmar. With this funding Maha can realize its growth ambitions in a challenging market where funding is scarce.
Why we fund this project
This transaction is highly inclusive, with a strong strategic fit with MASSIF and FMO. Maha focuses on farmers (the agriculture sector represents 36% of GDP and employs 60% of the population, in rural areas (70% of population lives in rural areas). They provide microfinance in Myanmar, a fragile state and one the poorest countries in SE Asia and it is classified as a UN LDC.
Environmental and social rationale
Maha is an E&S C category client, given that 100% of its loan portfolio is used to finance small-scale agribusiness and microbusinesses. E&S risks are limited and therefore no ESAP is applicable. Maha is in compliance with the national law and they adhere to FMO’s Exclusion List.
|Date||Total FMO financing|
|7/27/2020||USD 3.00 MLN|
|10/8/2018||EUR 0.08 MLN|
- Financial Institutions
- Signing date
- Total FMO financing
- USD 3.00 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)