Food
International Finance Corporation (IFC), a leading global development institution and a member of the World Bank Group has provided a loan to City Mart Holding Company Limited (CMHL), a supermarket outlet, worth $25 million loan, with the aim of development, to boost the country’s retail sector, and create much-needed jobs along the supply chain.
IFC’s funding will help CMHL to build approximately 20 more supermarkets and hypermarkets globally, over the next 3 years. CMHLs’ expansion will also enable it to integrate more farmers, micro, small and medium enterprises, and other suppliers into its supply chain and distribution networks.
The contract was inked on 11th January’ 2016 and it was closed on 10th February’ 2016.
CMHL is likely to raise its purchases from domestic suppliers six fold, reaching around $150 million by 2021, and create nearly 4,000 new jobs – half of which will be for women.
“IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail sector potential,” “in addition to funding, IFC’s expertise and advice on food safety, good social and environmental practices and corporate governance will also help us take the company to the next level,” said Win Win Tint, Managing Director of CMHL.
At present, Myanmar’s $12-billion retail sector is predominantly informal, with formal retailers holding less than 10 per cent of the market. However, economic growth and the opening up of the market after years of isolation have boosted demand for consumer goods.
“IFC supports the development of a modern retail sector in developing countries as it helps spur growth and job creation, develop supply chain and logistics infrastructure, and support smaller businesses,” “With our global expertise and industry knowledge, we will be delighted to work with CMHL to improve efficiency and standards to become a model retailer in Myanmar,” said Vivek Pathak, IFC’s Regional Director for East Asia and Pacific.
With the aim of enhancing the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors, IFC is functioning with the government and the private sector.
On this transaction, AZB & Partners advised IFC. And it’s concerned partner and Associates were Gautam Saha & Amrita Patnaik (Partners), Swati Chauhan & Pallavi Meena (Senior Associates).
