IFC to provide $25m funding for Myanmar’s largest retail group City Mart
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Currently, CMHL has over 150 retail outlets in the country and plans to construct about 20 more supermarkets and hypermarkets over the next three years.
Its plans are “to increase its purchases from domestic suppliers six fold, reaching around $150 million by 2021, and create nearly 4000 new jobs, half of which will be for women,” according to the filing.
IFC hopes that CMHL’s expansion in the retail sector in the country, will help create jobs, 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.
CMHL’s shareholders are Win Win Tint, the founder and managing director and her relatives.
“IFC’s investment is a sign of confidence in our business plan as well as in Myanmar’s retail sector potential,” said Win Win Tint. “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.”
Myanmar has a $12 billion retail sector that is predominantly informal with formal retailers holding less than 10 per cent of the market, according to the filing.
IFC is supporting reforms and investments in Myanmar, to strengthen the private sector and create new jobs for poverty reduction and boost shared prosperity. IFC works together with the government, private sector to improve the investment climate, access to finance and infrastructure. Their initial focus is on power and telecommunications.
Questions & Answers
Q.What is the primary purpose of the $25 million loan from the IFC to City Mart Holding Company Limited?
What is the primary purpose of the $25 million loan from the IFC to City Mart Holding Company Limited?
The loan is intended to finance the expansion of City Mart's retail business within Myanmar. This includes constructing approximately 20 new supermarkets and hypermarkets over the next three years.
Q.What are City Mart's specific goals regarding its domestic suppliers and job creation?
What are City Mart's specific goals regarding its domestic suppliers and job creation?
City Mart plans to increase purchases from domestic suppliers six-fold, aiming for around $150 million by 2021. The expansion also targets creating nearly 4000 new jobs, with half of these designated for women.
Q.Who are the owners of City Mart Holding Company Limited?
Who are the owners of City Mart Holding Company Limited?
The shareholders of City Mart Holding Company Limited are Win Win Tint, who is the founder and managing director, and her relatives.
Q.How large is Myanmar's retail sector, and what proportion is currently formal?
How large is Myanmar's retail sector, and what proportion is currently formal?
Myanmar's retail sector is valued at $12 billion. However, it is largely informal, with formal retailers accounting for less than 10 per cent of the total market.