Investors will look through crisis to 'great' Myanmar opportunities

Myanmar may be in the middle of a crisis as more than half a million Rohingya flee anti-Muslim militants. But investors are willing to look past the humanitarian crisis and find opportunities in the frontier market.

  • By GlobalMarkets
  • 13 Oct 2017
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By Rashmi Kumar 

International investors are likely to look beyond the mounting global anger towards Myanmar over the treatment of the Rohingya refugees and focus on “great” fortunes to be found in the country over the next several decades. 
“It’s sad to say, but the impact won’t be big,” Thomas Hugger, chief executive officer and fund manager at Asia Frontier Capital, told GlobalMarkets. “Even countries like Indonesia have conflicts, say in Papua, but people still invest there. So I think the impact will be minor, because so much investment is needed [in Myanmar] and the opportunities are great. 
“Plus, if you do direct investment, then you need to take a long-term view. What’s happening is very sad, but hopefully it is a short term crisis. If you’re investing in Myanmar (and other frontier markets), it should be for the next 40 to 50 years.” 
Hugger said he saw opportunities in infrastructure, mining, natural resources, agriculture, education as well as tourism, with the telecom industry the only one he considered saturated in Myanmar. 
Restoring stability in some parts of Myanmar is a top priority for the government as it looks to maintain the country’s reputation, said Aung Naing Oo, director general and secretary in the Myanmar Investment Commission. “That is probably the challenge not only for the government but it is also a challenge for the country as a whole,” he told GlobalMarkets

Foreign investment

Nevertheless, Naing Oo said he was optimistic about Myanmar’s future, thanks to the government’s push to bring about reforms to create a more open business environment. Two regulations are key — the Myanmar Investment Law, which has already taken effect, and the Myanmar Companies Act that is now being debated in parliament. 
Both are expected to give a fillip to foreign investment into the country, with the latter to allow international investors to buy stock on the Yangon Stock Exchange for the first time. 
Naing Oo added that he saw great investment potential in infrastructure, as weakness in its development in Myanmar created opportunities for investors. Thanks to China’s Belt and Road Initiative, Myanmar’s locational advantages will be lucrative in the future, he said. 

  • By GlobalMarkets
  • 13 Oct 2017

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 417,761.51 1606 9.02%
2 JPMorgan 380,362.89 1737 8.21%
3 Bank of America Merrill Lynch 364,928.71 1322 7.88%
4 Goldman Sachs 269,252.76 932 5.82%
5 Barclays 267,252.43 1082 5.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 HSBC 45,449.36 196 6.56%
2 BNP Paribas 38,734.80 217 5.59%
3 Deutsche Bank 37,615.10 139 5.43%
4 JPMorgan 34,724.19 118 5.01%
5 Bank of America Merrill Lynch 33,835.53 112 4.88%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 22,475.46 105 8.65%
2 Morgan Stanley 19,057.00 101 7.34%
3 Citi 17,812.08 111 6.86%
4 UBS 17,693.89 71 6.81%
5 Goldman Sachs 17,333.10 99 6.67%