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Who is our client

Maha is a deposit-taking financial service provider (licensed MFI) operating in rural areas of Myanmar. Maha is owned by the Myanmar Awba Group (87%), being Myanmar's largest manufacturer and distributor of agricultural technology (AWBA) with a focus on crop protection products, fertilizers and high quality seeds to approx. 3.5 mln farming families in Myanmar and the International Finance Corporation (13%), a member of the World Bank Group. Maha was registered in 2013, started operations in 2014 and has scaled up operations in the last few years. Maha is currently operating in 32 branches across 8 regions and provides financial services to more than 40,000 clients, 93% of whom are farmers. Maha has total assets of approx. 40 USD mln as on Dec 2019. Maha has been a client since 2019 where MASSIF provided an USD 3mln (O/S USD 3mln) LCY equivalent loan maturing in March 2022.

Funding objective

The intended USD 6mln in MMK equivalent will further support Maha in reaching out to its farmers and small business owners in rural Myanmar. With this funding Maha can further realize its growth ambitions in a challenging market where funding remain scarce.

Why we fund this project

This transaction is highly inclusive, with a strong strategic fit with MASSIF and FMO. Myanmar is one of the poorest countries in SE Asia with a GDP per capita of USD 1,263 and is on the UN Least Developed Countries list which automatically qualifies for reducing inequalities. It is an emerging market with approximately 51.5 million people, 70% of which live in rural areas in relatively worse-off conditions than urban areas. The primary occupation in rural areas is agriculture which employs 70% of the labour force. Additionality of the project is high, thanks to FMO being able to provide long term financing in a country where funding is still very scarce.

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.

More investments

Date Total FMO financing
1/31/2019 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)