UOB extends first foreign bank loan in Myanmar
United Overseas Bank Group (UOB) is offering onshore financing to Rangoon Excelsior Co Ltd, marking the first onshore loan by a foreign bank in Myanmar since the country awarded licenses in October 2014.
Rangoon Excelsior, a French-Myanmar joint venture, is seeking funds to refurbish a new hotel in Yangon.
In a statement released today, UOB did not provide the loan amount to the company. It opened the Yangon branch this week, the third among nine international banks awarded the licenses. Bank of Tokyo-Mitsubishi UFJ and Oversea-Chinese Banking Corp opened their branches in the last week of April. Others including Bangkok Bank are expected to open their branches later.
Ian Wong, managing director and head of Strategy and International Management, said the hospitality sector has been identified by UOB as one of the key industries the Bank will focus on as it expands its business in Myanmar. According to the McKinsey Global Institute, the hospitality sector is expected to contribute US$14.1 billion to Myanmar’s Gross Domestic Product by 2030, up from US$0.6 billion in 2010, making it one of the fastest-growing sectors in the country.
