AGD Bank Ltd signs finance agreement with Pact Global Microfinance Fund
AGD Bank Ltd, one of the leading financial institutions in Myanmar, announces the signing of a second financing agreement of USD25.0 million equivalent to MMK35.0 billion with Pact Global Microfinance Fund (PGMF). This is a first of its kind hybrid loan signed between AGD Bank and a Microfinance Institution, where the facility will be disbursed in local currency.
The loan agreement between AGD Bank and Pact Global Microfinance Fund was signed on 7th August 2020 and will support the economic growth in remote rural areas of Myanmar. This financial agreement will help to develop the agricultural industry and grow rural areas which will benefit the whole of Myanmar by issuing small loans via the fund. AGD Bank is committed to support the development of rural areas especially in agriculture as part of its agenda to promote financial inclusion and improve the livelihood for the people of Myanmar.
U Pyi Soe Htin, Chief Business Officer, of AGD Bank Ltd, says “We are delighted to announce the signing of this second finance agreement with Pact Global Microfinance Fund. AGD Bank’s vision is to provide a vitally important banking infrastructure to make a lasting impact on the future of agriculture in Myanmar.”
Pact Global Microfinance Fund (PGMF) is one of the largest microfinancing institutions in Myanmar. It has been supporting the country’s rural areas since 1997 by issuing small loans to those living in the communities which enable them to build their incomes and improve their lives.
Mr. Fahmid Bhuiya, President & COO, of PGMF says “This agreement signed in the crucial time when the World economy has been effected by several factors including COVID’19 and foreign exchange management became very challenging. Through this USD 25 Ml backed MMK loan we can bring USD fund from foreign investors and provide microfinance services to 68,000 (approx.) households in Myanmar.”
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