ADB loan pushes Myanmar financing forward

Author: Ashley Lee | Published: 19 Dec 2014

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...