United Overseas Bank (UOB) today announced its agreement to finance the construction of a new power plant in Yangon, taking another step in building its Myanmar portfolio.
The agreement was struck with Royal GK, which has been commissioned by the Myanmar Central Power Co to procure engines for the construction of a gas-fired electricity power plant in Yangon. The project is set to be completed in June this year.
The Singapore bank said it's committed to partner its clients in investing in Myanmar's infrastructural projects, a segment that is set to boom as the country develops its economy.
"As Myanmar has prioritised the provision of power in the creation of new industries and job opportunities for the country, we are keen to finance companies such as Royal GK to help support the infrastructural needs of the country's economic transformation," UOB's managing director and head for group strategy and international management Ian Wong said.
Following its government's move to open up its economy in recent years, Myanmar is now a key frontier market for corporate banking businesses offered by Singapore banks.
In October last year, UOB and OCBC were among the nine foreign banks that received approval for a foreign bank license in Myanmar. The license only allows services to foreign companies.
OCBC said earlier this month that its first Myanmar branch under the license will start operating in April 23.