SLCM, the wholly owned subsidiary of Sohan Lal Commodity Management, a leading agri logistics and warehousing group, has tied up with one of the largest and oldest banks in Myanmar, C B Bank, for collateral financing, the Economic Times of India has reported. It aims to provide agri-financing solutions to farmers, processors, traders, exporters and importers across Myanmar. C B Bank will offer farmers to pledge 60% of their commodities which will be stored at SLCM warehouses for a stipulated period at an annual interest rate of 13%.
The move is part of the group’s expansion plans in Myanmar and is expected to double its presence from the current 4 locations to 8 locations in total in the country.
The Economic Times quoted Sandeep Sabharwal, group CEO, SLCM as saying that: “This is the second tie-up that we have formalised in 2015 in Myanmar after the MoU with Yoma Bank earlier this year. Our output has been very encouraging from the earlier association and the way in which we are seeing a paradigm shift in Myanmar's economy and policies, especially relating to agriculture and collateral financing, we are determined to further explore the region and fourfold our presence there. We have replicated our best practices & expertise in agriculture warehousing domain.”
Sohan Lal Commodity Management, through their wholly owned subsidiary SLCM Ltd., had tied up with Yoma Bank earlier this year and to date has disbursed loans worth 680 million kyats to several clients on agriculture commodities.