SEA Digest: FMO, Rabobank Extend Loan to Agrocorp; Myanmar’s DAWN Bags $7.5m

Jun 2020
Southeast Asia, June, 03 2020 - Dutch development bank FMO and Rabobank have extended a $50-million sustainable loan package to Singapore-based Agrocop International while Myanmar-based microfinance firm DAWN has received a $7.5-million local currency loan.

SG-based Agrocorp secures $50m sustainable loan from Dutch FMO, Rabobank 

Dutch development bank FMO and Rabobank have signed a $50-million sustainable loan package for Singapore-headquartered agri-commodities trading firm Agrocorp International, the lenders announced on Wednesday.

The loan is split into two tranches with FMO covering prepayments and inventory while Rabobank will finance receivables. Rabobank will also take on the role of the facility agent.

As part of the facility, Agrocorp will be working with consultancy firm Earth Systems to set and monitor sustainability targets and reporting requirements.

The agri-focused firm will also be working with FMO to establish farmer training programmes in markets such as Myanmar where it has a strong presence.

Agrocorp is focused on various agricultural commodities such as pulses, wheat, rice, oilseeds, sugar, and edible nuts. The company has operations in over 20 countries.

FMO provides $7.5m loan to Myanmar-based DAWN Microfinance

FMO has provided a $7.5 million in local currency loan to Early DAWN Microfinance Company Ltd to weather the impact of COVID-19 pandemic on its MSME clients, the FMO said in a statement.

The pandemic, which has caused rapid disruption across the country’s economy, including in the microfinance sector, has driven the development bank to provide loans to the institution.

The loan would enable DAWN to continue supporting its microfinance clients in the current difficult period. In Myanmar, the repayment deferrals in combination with debt service obligations and ongoing operational costs are severely limiting the lending capacity of MFIs.

Source : DealStreetAsia

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