The United Nations Capital Development Fund (UNCDF), under the framework of “Expanding Financial Access” (EFA) project, invites interested licensed credit providers to respond to this Expression of Interest (EOI). 

Background and Objectives

“Expanding Financial Access” (EFA) is a UNCDF project with an objective to increase access to financial services to low income households on sustainable basis. In this sector based programme, UNCDF will play the role of market facilitator to advance financial inclusion in Myanmar. One component in this strategy is the implementation of a Market Development Facility (MDF). As a local currency loan fund, the MDF will provide financing initially in the probable range of 100 Million to 200 Million Myanmar Kyats, to promising credit institutions with a clear strategy to extend financial services enabling livelihood development to rural marginalized sectors, primarily women, migrant households, and youth.

A second, and equally important, MDF objective is providing an opportunity and environment for credit providers, with limited to none borrowing experience from formal agencies, to build institutional capacity and a credit standing within the international investment community. With institutional borrowing experience and enhanced capacity, credit providers are better positioned to eventually access increased and longer term financing as opportunities emerge from professional funding agencies.

Schedule of Events

MDF invites interested MFIs to express their interest to participate in the first round of loan(s) planned for disbursement in July 2016. Additional loans are expected later in 2016 and during 2017. 

Eligibility

Eligibility is open to credit institutions licenced by the Financial Regulatory Department of the Ministry of Finance. Priority, however, will be given to Myanmar credit agencies registered with a local company or NGO status and with a clear need for funding to expand client outreach to marginalized sectors and geographic areas. 

Eligibility

Eligibility is open to credit institutions licenced by the Financial Regulatory Department of the Ministry of Finance. Priority, however, will be given to Myanmar credit agencies registered with a local company or NGO status and with a clear need for funding to expand client outreach to marginalized sectors and geographic areas.

The following licensed credit providers are eligible under this call for EoI:

Non-banking financial service providers such as:

1. Local Microfinance Institutions (Local MFIs);
2. Foreign-owned Microfinance Institutions (international MFIs);
3. Cooperatives;
4. Savings and Credit Unions (SCU).

Applicant requirements include:

• Focused services to low income clients, including women and youth;
• Prioritizing rural financial inclusion within its business strategy;
• Seeking to innovate and offer new products and delivery channels to low income clients, especially rural women, youth or internally displaced families;
• Sustainability or making clear progress towards improving financial and operational performance;
• Maintaining a unwavering commitment towards growth in outreach and institutional development in areas such as operations, finance, internal controls, and governance;
• Intentionally apply responsible finance principles as demonstrated through endorsing the Smart Campaign and its operational practice.