SINGAPORE - United Overseas Bank Group (UOB) announced on Wednesday that it is offering an onshore loan to a French-Myanmar joint venture.
The loan, for an undisclosed sum, will help Rangoon Excelsior Company finance the refurbishment of a former colonial building in downtown Yangon into a new five-storey hotel, said the bank in a statement.
UOB - one of the nine international banks which were awarded provisional bank licenses last October - opened the doors to its first Yangon branch on May 4.
The branch is housed in Park Royal Hotel, within the city centre, and provides services to foreign companies such as corporate loans, trade and project financing, and cash management solutions.
"The financing of a new hotel in Yangon is in line with our approach of supporting businesses that are helping to drive the development of Myanmar," said Mr Ian Wong, managing director and head of strategy and international management at UOB Group.
"As tourism is expected to be a main contributor of new jobs in Myanmar over the next decade, we are keen to partner companies such as Rangoon Excelsior in helping to build the necessary tourism infrastructure to support the growth of this sector."
UOB has singled out four industries - energy, hospitality, infrastructure and construction, as well as manufacturing - in which it will focus on helping foreign companies expand.
The four sectors combined are expected to contribute 70 per cent or US$154 bilion to Myanmar's economic growth in 2030.