UOB signs loan deals with Myanmar's car, tourism industries

Since the country’s relaxation of automotive-import regulations in 2012, Myanmar’s automotive industry has experienced strong growth. The number of vehicles has increased by 86 per cent in two years, and is expected to grow by 7.8 per cent per annum through 2019.
UOB’s loan agreement with Cycle & Carriage Automobile Myanmar Company will help fund the building of two automobile showrooms and a servicing workshop in Yangon. These will cater to the rising demand for private transport.
UOB also reinforced its commitment to supporting the country’s tourism industry with a loan to System-Bilt Myanmar to build a 200-room extension for an international hotel, the Summit Parkview in central Yangon.
Summit Parkview is the second hotel that UOB has financed in the last two months. In May, the bank helped Rangoon Excelsior Co, a French-Myanmar joint venture, to refurbish a hotel in Yangon to meet the increasing number of tourists drawn to Myanmar’s rich cultural heritage.
According to the country’s Ministry of Hotels and Tourism, international visitor arrivals are expected to rise to 7.5 million in 2020 from 3.5 million in 2014 as the country attracts increased global attention.
Wee Ee Cheong, UOB group deputy chairman and chief executive officer, said the Singapore-based banking group was committed to Myanmar for the long term. “We are excited about Myanmar’s economic prospects, as are our clients from across continents who are actively investing in the country.
“Their investments are directed towards meeting Myanmar’s growing urbanisation and industrialisation needs and sustainable economic growth.
“UOB is keen to support sectors that can help create far-reaching and long-term benefits for the country, including investments in infrastructure, manufacturing and tourism,” Wee said.
In addition to the new loans signed on Thursday, UOB has provided offshore financing for several clients with projects in the energy sector, one of which was Asiatech Energy early last year – the first Singaporean company to build a combined-cycle gas-fired power plant in Mon state to help serve Myanmar’s electrical needs.
 
International, regional |companies backed
UOB plans to help its clients invest US$300 million (Bt10 billion) in Myanmar over the next 12 months. These clients, which include multinational and regional interests based in Europe and Asia, have said investments will be directed mainly at building factories, hotels and commercial properties.
The UOB Yangon branch provides corporate loans, trade and project financing, and cash-management solutions for regional and global companies expanding into Myanmar. Across Southeast Asia, UOB has the largest banking network, which includes 156 branches in Thailand, Myanmar’s biggest trading partner in the region.
Wee said that with UOB’s network, experience and expertise, the bank was best placed to support its clients with interests in Myanmar.
“Beyond providing financial solutions, we have a keen understanding of the needs of businesses setting foot on new ground. Through our extensive network across the region and the local team in Myanmar, we have been actively helping our clients connect with industry bodies and business partners as they invest in the country,” Wee said.
In 2013, UOB established an FDI (foreign direct investment) advisory unit in Yangon to help its clients expand their businesses into Myanmar.