The Asian Development Bank (ADB) is lending $100
million to Singapore-listed Yoma Strategic Holdings to build
out connectivity infrastructure in Myanmar. Announced on
December 17, the deal structure shows how multilaterals can get
comfortable in the frontier market.
Project financings have closed in the recently
opened frontier market; most notably a non-recourse financing to Pan Asia Majestic Eagle
(Pamel) for the construction of 1,250 telecommunications
towers in which international banks were involved.
But it’s taken longer for
multilaterals and export credit agencies (ECAs) to become
comfortable with legal risk in country.
The structure of ADB’s loan to Yoma could set a
precedent for them to lend into Myanmar. This is an innovative
structure on how corporates can obtain offshore debt in
Myanmar, said Chris Bishop, senior associate...