KHMF Equity&Loan (IFC-40355)

Countries
  • Myanmar
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 15, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
KEB HANA MICROFINANCE LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 13.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 13.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 4, 2021

Disclosed by Bank May 7, 2018


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, the proposed project consists of an equity investment of up to US$3 million in KEB Hana Microfinance Ltd., a deposit taking microfinance company in Myanmar, and a MMK denominated senior loan of up to US$10 million equivalent for a tenor of up to 5 years to KHMF for on-lending to micro enterprises in Myanmar. Through the investment, IFC will support KHMF’s growth of its micro and very small enterprise (“VSE”) loan portfolio, which increases financial inclusion and reduces poverty in Myanmar. The Company focuses on extending small loans to support the financing needs of the lower-income population, especially women, across Myanmar.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

An extended list of private actors is available in a separate file. 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Established in 2013, KEB Hana Microfinance Ltd. is sponsored by Hana Financial Group through its subsidiary KEB Hana Bank, which is one of the four largest banking groups in Korea and is rated A1 by Moody’s, A- by Fitch, and A+ by S&P. The current main shareholders of KHMF are: (i) KHB with a 99.998% shareholding, and (ii) the Company’s managing director, Mr. Lee Jeung Sae with a 0.002% shareholding. KHMF focuses on extending small loans to support the financing needs of low-to-mid income borrowers, especially women, through 20 sale units in 6 states in Myanmar.            

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - KEB Hana Bank (KHB) Parent Company -
Baring Private Equity Partners Parent Company Construction owns Interplex Holdings Ltd Client Construction
Doosan Heavy Inds & Constr Co Parent Company Construction owns Doosan Power Systems Client Construction
Hana Financial Investor Finance invests in Ace Tool Parent Company Construction
Hana Financial Investor Finance invests in Ace Tool Client Construction
Hana Financial Investor Finance invests in Aerotech Korea Co Ltd Client Construction
Hana Financial Investor Finance invests in Aerotech Korea Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Agricultural A Ram Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Agricultural A Ram Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Ansung Industrial Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Ansung Industrial Co Ltd Client Construction
Hana Financial Investor Finance invests in Anu Information Telecommunication Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Anu Information Telecommunication Co Ltd Client Communications
Hana Financial Investor Finance invests in April Intl Entrp Pte Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Arion Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Arion Co Ltd Client Communications
Hana Financial Investor Finance invests in Asia Symbol China Holdings Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Baekdoo F&S Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Baekdoo F&S Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Baring Private Equity Partners Parent Company Construction
Hana Financial Investor Finance invests in Blue Sky Engineering & Construction Parent Company Construction
Hana Financial Investor Finance invests in Blue Sky Engineering & Construction Client Construction
Hana Financial Investor Finance invests in Brickworks Ltd Parent Company Construction
Hana Financial Investor Finance invests in Brickworks Ltd Client Construction
Hana Financial Investor Finance invests in Byucksan Marine Insulation System Co.Ltd Parent Company Construction
Hana Financial Investor Finance invests in Byucksan Marine Insulation System Co.Ltd Client Construction
Hana Financial Investor Finance invests in CYNEXZONE CO LTD Parent Company Communications
Hana Financial Investor Finance invests in CYNEXZONE CO LTD Client Communications
Hana Financial Investor Finance invests in Dabp Co.Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Dabp Co.Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in DaeGu Agricultural Products Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in DaeGu Agricultural Products Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Daum Construction Co Ltd Client Construction
Hana Financial Investor Finance invests in Daum Construction Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in DAUN E&C Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in DAUN E&C Co Ltd Client Construction
Hana Financial Investor Finance invests in Deokwoon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Deokwoon Co Ltd Client Construction
Hana Financial Investor Finance invests in Dong Ah Remicon Ltd Co Parent Company Construction
Hana Financial Investor Finance invests in Dong Ah Remicon Ltd Co Client Construction
Hana Financial Investor Finance invests in Dong Sung Precision Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Dongsung Heavy Industries Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Dongwoo Skt Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Dongwoo Skt Co Ltd Client Communications
Hana Financial Investor Finance invests in Doosan Heavy Inds & Constr Co Parent Company Construction
Hana Financial Investor Finance invests in Doosan Infracore Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Doosan Power Systems Client Construction
Hana Financial Investor Finance invests in Econy Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Gumsung Industrial Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in HAN KOOK SAN UP Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hanil Construction Material MFG Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hans Ind Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hansol Construction Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Hansol HomeDeco Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Il-Shin Tech Parent Company Communications
Hana Financial Investor Finance invests in Il-Shin Tech Client Communications
Hana Financial Investor Finance invests in INT Tec Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in INT Tec Co Ltd Client Communications
Hana Financial Investor Finance invests in Interplex Holdings Ltd Client Construction
Hana Financial Investor Finance invests in Je&Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Kapjin Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Kapjin Co Ltd Client Communications
Hana Financial Investor Finance invests in Kiseung Ind Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in KMS Lab Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in KMS Lab Co Ltd Client Communications
Hana Financial Investor Finance invests in Korea Land & Housing Corp Parent Company Construction
Hana Financial Investor Finance invests in Kpf Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in KR Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Latchwon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Limscable Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Limscable Co Ltd Client Communications
Hana Financial Investor Finance invests in Mido Construction Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Misung Remicon Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Nara Corp Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Nara Corp Client Agriculture and Forestry
Hana Financial Investor Finance invests in Nubicom Inc Client Communications
Hana Financial Investor Finance invests in Nubicom Inc Parent Company Communications
Hana Financial Investor Finance invests in Ohsang International Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Ohsang International Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in PTK Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in PTPN III Client Agriculture and Forestry
Hana Financial Investor Finance invests in PTPN III Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Rgm Intl Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Samick Tech Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Sang Sang Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Seakwang International Network Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Seakwang International Network Co Ltd Parent Company Agriculture and Forestry
Hana Financial Investor Finance invests in Shin Textile Solutions Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Thai Beverage PCL Parent Company Construction
Hana Financial Investor Finance invests in Unitoa Co Ltd Client Communications
Hana Financial Investor Finance invests in Unitoa Co Ltd Parent Company Communications
Hana Financial Investor Finance invests in Utronix Inc Client Communications
Hana Financial Investor Finance invests in Utronix Inc Parent Company Communications
Hana Financial Investor Finance invests in YJ Link Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in YMP Co Ltd Parent Company Construction
Hana Financial Investor Finance invests in Yujin Fibre Board Industrial Co Ltd Client Agriculture and Forestry
Hana Financial Investor Finance invests in Yujin Fibre Board Industrial Co Ltd Parent Company Agriculture and Forestry
Mido Construction Co. Parent Company Construction owns Mido Construction Co Ltd Client Construction
Rgm Intl Parent Company Agriculture and Forestry owns April Intl Entrp Pte Ltd Client Agriculture and Forestry
Rgm Intl Parent Company Agriculture and Forestry owns Asia Symbol China Holdings Ltd Client Agriculture and Forestry
Thai Beverage PCL Parent Company Construction owns Walker Corp Pty Ltd Client Construction

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

KEB Hana Microfinance Limited
Park Soo Hyun, Director
soohp@hanamicrofinance.com
404(B), Pearl Condo, Kabaaye Pagoda Road, Bahan Township, Yangon

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works