UK development finance institution CDC announced its first direct equity investment of $30 million in Myanmar with Frontiir Co. Ltd, the country’s leading internet service provider.
The investment is aimed at supporting Frontiir’s plans to expand internet coverage to 22 lower-income townships in Yangon and Mandalay by 2022, and create job openings for an estimated 4,000 locals, a large number of which will be young people aged 30 and below.
Said Srini Nagarajan, CDC’s Managing Director and Head of Asia, “At CDC, we firmly believe in the power of connectivity to help build the economic strength of communities and businesses. Frontiir’s expansion has been impressive, led by its experienced management – the team brings a great mix of commercial, innovative and social awareness to the table. CDC’s capital will help accelerate the business growth, helping it reach further remote regions.
This is CDC’s first direct equity investment in Myanmar. We are delighted to be creating long term partnerships in a country where our capital will make a meaningful difference to people’s lives.”
Dr. Godfrey Tan (a.k.a) Dr. Wai Lin Tun, Chairman & CEO of Frontiir echoes the sentiment, saying, “Frontiir is honoured to be the recipient of the first-ever direct equity investment by CDC in Myanmar, an accolade we believe demonstrates that an ethical, fair, and sustainable business model can still lead to great success amidst huge challenges in an emerging country like Myanmar; and we hope that a new generation of entrepreneurs will follow this path to success. With CDC’s investment, we are excited to have the opportunity to create thousands of jobs and provide millions with unlimited internet for as low as 200 Kyats ($0.13) per day, and triple our foreign direct investment into Myanmar over the next 3 years.”
Read more about the announcement here.