Myanmar non-recourse financing first explained

Author: Ashley Lee | Published: 13 Oct 2014

Myanmar’s first non-recourse financing involving international banks was signed on September 30. It may open infrastructure financing in the frontier market.

Pan Asia Majestic Eagle (Pamel) received $85 million in financing from DBS, ING, OCBC Standard Chartered and Sumitomo Mitsui Banking Corporation to support the construction of 1250 towers for Ooredoo Myanmar, one of the two telecommunications companies that received a telecommunications license in June 2013.

It signifies that lenders may now be open to infrastructure financing in Myanmar, even though its legal framework for aspects such as taking security are nascent – and in some cases, non-existent.

This has proven that a number of international banks and some of the biggest players in the region are comfortable taking risk in Myanmar, said Edwin Vanderbruggen, partner at VDB Loi who represented the...