Daiwa Securities sets up $30 mil. venture fund in Myanmar

17, Jul. 2019

BANGKOK, NNA - Major Japanese brokerage Daiwa Securities Group Inc. has established a venture capital fund in Myanmar to invest in promising unlisted firms mainly in the consumer products and services sector as well as the infrastructure field.

Daiwa's two wholly owned subsidiaries -- Daiwa PI Partners Co. and Daiwa Corporate Investment Co. -- have set up the $30 million Daiwa Myanmar Growth Fund L.P. to become the first Japanese financial institution to create such a venture fund exclusively tailored to unlisted firms in Myanmar, Daiwa Securities spokesmen told NNA on Friday.

Japan's Taiyo Life Insurance Co. will partner with the fund, which is scheduled to operate in the next 12 years, they said.

The fund plans to inject capital equivalent to stakes of 10 to 30 percent in ventures for an investment period of up to five years while sending board members to support management, the two Daiwa subsidies said in a joint statement.

Myanmar Securities Exchange Centre Co., an equally owned joint venture between Daiwa Securities Group and Myanmar Economic Bank, will assist firms in the sectors going public, the statement said.

Daiwa Securities Group is an investor in Yangon Stock Exchange Joint-Venture Co., which opened the local bourse in 2015. (NNA/Kyodo)