LOLC Myanmar obtained a microfinance license in 2013 and is today one of the 10 leading microfinance institutions (MFI) in the country. It is present in three regions (Yangon, Bago and Mon).
LOLC Myanmar is the subsidiary of the Sri Lankan group Lanka Orix Leasing Company Plc (LOLC Plc) and is responsible for microfinance activities in Burma.
The project involves the allocation of a senior credit line for an amount equivalent to USD 4m in local currency (via TCX) to the Burmese microfinance institution LOLC Myanmar in order to support the development of its loan portfolio.
This operation is supporting an MFI with responsible practices, in a country where financial inclusion is still low.
On the economic front, the project will contribute to the financial inclusion of vulnerable populations. Its clients are all microentrepreneurs, working in the sectors of trade (63%), services (22%), agriculture (12%) and industry (2%).
At the social level, the project will support employment and training for local communities. The project is expected to employ an additional 1,000 people over the next 3 years, including 77% of women. Finally, PROPARCO’s financing should support over 37,000 indirect jobs (e.g. with the MFI’s clients).