Daiwa Securities forms joint venture to offer microfinance in Myanmar
BANGKOK, NNA – Japanese brokerage Daiwa Securities Group Inc. has entered the underdeveloped finance market in Myanmar through a joint venture.
The firm’s private equity investment vehicle Daiwa PI Partners Co. has injected several hundred million yen (1 million yen equals $9,207) into local microfinance provider OK Myanmar Co. to establish a joint venture, a securities group spokesman told NNA Thursday.
The joint venture, called Do Microfinance Co., got a license on Oct. 1 to expand from the capital Yangon to other parts of the largely impoverished Southeast Asian nation where many citizens lack formal banking relationships, the spokesman said.
The joint venture is providing loans, including unsecured ones, to small businesses such as retailers, wholesalers and restaurants, all with relatively low credit ratings, Daiwa PI Partners managing director Kazuyoshi Mitsukoshi told NNA in a phone interview Friday.
Mitsukoshi declined to disclose the number of borrowers or give a current loan balance for the joint venture.
Adults with a bank account made up just 26 percent of Myanmar’s population in 2017, according to the World Bank’s Global Findex Database that year.
The joint venture is 45 percent owned by OK Myanmar and 55 percent by Daiwa PI Partners, Daiwa Securities said in a statement. The Japanese firm will hold three of five seats on the microfinance joint venture’s board, the managing director told NNA.