UOB sees strong FDI pipeline into Myanmar
Singapore
UOB on Thursday said it would expand its Southeast Asian network with the opening of its branch in Myanmar this month, and sees a strong pipeline of foreign direct investment into the country.
It has received regulatory approval for its Yangon branch to be opened on May 4 - this will bring its exposure in Asean to eight countries in the region.
"We have a strong pipeline of foreign direct investment from across our network set to flow into Myanmar now that we have received final approval from the Central Bank of Myanmar to offer onshore banking solutions to foreign enterprises and joint ventures," said Harry Loh, UOB's country manager in Myanmar.
UOB announced in April a financing agreement with Singapore-based Royal GK to procure gas engines for the construction of a gas-fired electricity power plant in Yangon. A year ago, it also financed Singapore-based Asiatech Energy in building a combined cycle gas-fired power plant in Mon State.
The bank said it will focus on helping companies invest in four key industries: energy, manufacturing, construction and hospitality. The focus was based on results gleaned from a 2014 survey.
UOB said it was the first foreign bank in 2013 to establish a foreign direct investment advisory unit in Myanmar to help its clients tap opportunities there. It set up its representative office in Yangon in 1994.
Ian Wong, managing director, group strategy and international management, UOB Group said: "Myanmar, with its huge population and abundant natural resources, is proving to be an attractive destination for our corporate clients from around the world."
UOB will offer services that include corporate loans, trade and project financing as well as cash management solutions. It will also work with the domestic banks in the areas of trade finance.
The bank has launched a scholarship programme to help broaden the banking and finance talent pool, in partnership with two universities in Myanmar. Over the last two years, it has also organised several seminars in Yangon, Singapore, China and Thailand for Myanmar's bankers, regulators, and the local business community.
