SINGAPORE - Mainboard-listed Yoma Strategic said on Monday (Sept 24) that its subsidiary Yoma Fleet is partnering up with Myan Shwe Pyi Tractors (MSP CAT), the authorised dealer of Caterpillar-branded heavy equipment in Myanmar.
Yoma Fleet is an automotive and heavy equipment financing platform, and the new partnership will support MSP CAT's retail and rental business, as well as provide funding for its customers, Yoma said.
Yoma Fleet will initially finance MSP CAT's existing rental portfolio for an amount of about US$7 million. This includes 71 pieces of heavy equipment, of which 63 are Caterpillar machines. In addition, Yoma Fleet will become the preferred financing partner for MSP CAT's customers.
According to Yoma Strategic, Myanmar has a substantial need for infrastructure development, with a number of large-scale infrastructure projects currently in progress or in the pipeline. These projects include power stations, ports, special industrial zones, and upgrades to existing transportation networks. The Myanmar government also has plans to allocate US$21.4 billion to rail, road, port and aviation projects by 2030, it said.
Said Yoma Strategic's CEO, Melvyn Pun: "Our partnership with MSP CAT represents a unique opportunity to access MSP CAT's wide distribution network to support the infrastructure and construction sectors, especially in relation to their dealership rights for Caterpillar.
"At a time when we are anticipating a huge pick-up in infrastructure build-out as well as a resurgent mining sector, we expect this partnership to provide scalable financial returns for our Yoma Financial Services division in the years to come."
Myanmar-focused Yoma Strategic has a diversified portfolio of businesses in real estate, consumer and financial services, among others.
As at 12.50pm on Monday, its shares were trading flat at $0.255 apiece.