At the signing ceremony in Ho Chi Minh City, the two partners announced that Ruby Hill Microfinance will commence business with the initial capital commitment of US$5 million.
Dragon Capital and Loi Hein Group will respectively own 49% and 51% of the stakes in the new firm.
Ruby Hill Microfinance will focus on promoting inclusive loan products and services to the burgeoning workforce driving Myanmar’s rapid economic development.
The firm will be strategically led by Dr Sai Sam Htun and Dominic Scriven, the respective chairmen of the two groups. They will directly chart the business course of the microfinance institution from its board of directors.
Meanwhile, Trinh Proctor, Loi Hein Group’s chief strategy officer, has been appointed as CEO.
The formation of Ruby Hill Microfinance will combine the banking and microfinance expertise developed by Dragon Capital Group in Vietnam and the Greater Mekong Subregion with the local presence and knowledge of Loi Hein Group, one of Myanmar’s largest business conglomerates.
Ruby Hill Microfinance aims to serve at least 50,000 consumers in its first year of business, according to chairman Dr Sai Sam Htun. The firm plans to consistently raise its capital to US$1.2 billion within the next ten years.
“The success of Ruby Hill Microfinance is of paramount importance to Dragon Capital Group, as it is our first investment in Myanmar,” said Dominic Scriven, chairman of Dragon Capital. He was glad to collaborate with Loi Hein Group to help the Burmese gain access to credit and escape poverty.
The United Nations Capital Development Fund estimates that more than 50% of Myanmar’s 60.9 million strong population had no access to financial services. The total unmet financing demand in Myanmar is estimated at around US$1 billion, which presents a great opportunity for microfinance services.