FMI takes steps to raise expansion capital 1

He said the company is also planning to raise capital through issuing new shares as well as selling shares to foreign investors. “Despite our declining profit, investments must continue to be made for sustained growth. For future capital requirements, we will invite more foreign investment as well as issue new shares,” he said.

For the financial year ended March 31, 2019, FMI posted a 51.6pc fall in net profit to K9 billion compared to the previous corresponding period last year, mainly due to higher costs incurred for employee compensation and professional fees amongst other cost items. 

The reasons for the lower net profit included depreciation of the kyat at the end of last year and beginning of 2019, cancellation of several unfavourable projects and setting aside funds for long-term projects.

This was despite revenue for the period rising 36pc to K279.7 billion, driven primarily by Yoma Bank.

Mr Pun said due to the lower net profit, the board has made the decision for the first time in 27 years to not declare a dividend as funds needed to be set aside for investments. In the previous financial year, the company had declared a dividend of K700 per share.

He noted that Yoma Bank will upgrade its operations to allow for government services to withdraw their salary via Wave Money, to take small-scale non-guaranteed loans through the bank’s Smart Account and to link Wave Money to agents for payment transactions.

He said the instalment plan for those who want to buy a residential property in the affordable City Loft project has been successful and that more investments may be planned for such projects. The plan allows those who can pay K370,000 a month to do so over a 25-year period.

Meanwhile, FMI chief executive U Tun Tun said the technology linking Smart Account with Wave Money has been implemented. “We can offer the services as soon as we get approval from the Central Bank of Myanmar,” he added.

On the matter of the capital raising exercise, U Tun Tun said the company will be announcing it in the coming months. – Translated