UNCDF launches Market Development Facility with first loan to MFI Pyae Mahar Services
The UN Capital Development Fund (UNCDF) in Myanmar commenced its Market Development Facility (MDF) with its first loan to Pyae Mahar Services Ltd. – a Myanmar-owned (MFI) microfinance company. The three-year loan, totalling 300 million Myanmar Kyats, will be used by Pyae Mahar to increase its loan portfolio for greater lending capacity to its Ayeyarwady-based clients.
Mr. Paul Luchtenburg, the UNCDF Country Coordinator in Myanmar, expressed his thanks to the Ministry of Finance’s Financial Regulatory Department for its support for Myanmar-owned microfinance institutions by approving this financing for Pyae Mahar.
“This loan is welcome as a first step for the UNCDF Market Development Facility working as an innovative catalyst to build financial market linkages and leverage funds to expand financial inclusion in primarily rural markets,” he said.
Pyae Mahar Services Managing Director, Mr. U Min Aung, was thankful for UNCDF’s clear show of confidence in his business and looks forward to potential opportunities arising from this investment.
He said, “UNCDF has enabled the company to acquire its first-ever financing and meets an immediate need to expand services to its 25,000 low-income clients. I am hopeful that experience gained from working with UNCDF will lead to greater financing opportunities from the local banking community in the years to come.”
With over 50 years of service in the least Developed Countries (LDCs), UNCDF operates as a change agent to stimulate both the public and private sector to develop their economies through innovative instruments such as loans, grants and guarantees as well as strategic technical assistance. As an incubator, UNCDF pilots initiatives to overcome market barriers, promotes emerging opportunities to the broader mainstream market and provides critical financing for emerging FSPs to achieve their potential.
This loan is a welcome as a first step for the UNCDF Market Development Facility working as an innovative catalyst to build financial market linkages and leverage funds to expand financial inclusion in primarily rural markets.
UNCDF Myanmar Country Coordinator