VDB Loi assists as first security on Myanmar assets is perfected for international finance
19 Jun, 2014
Myanmar achieves another legal milestone as its local authorities upgrade their existing administrative practice to accommodate the registration of international secured lending. Leading Myanmar law and tax advisory firm VDB Loi has successfully completed the first registration of a secured interest on Myanmar assets for a foreign loan in modern times. The borrower and lender names are not disclosed, except that the Myanmar borrower is a wholly owned foreign entity. Myanmar has improved its regulatory framework of international financing as part of the Foreign Investment Law and the Foreign Exchange Management Act, which were enacted in 2012. Nevertheless, the administrative practice for registering security under Myanmar law in general remained untested in modern times as regards international loans.
Managing Partner Jean Loi (pictured) explains: “We are very happy to announce the successful completion of the first registration of a local security on international financing. This was a real test case. It really was a collaborative effort with the Myanmar authorities to revamp administrative practices and processes. We thank them for their open and constructive cooperation “.
Senior partner Edwin Vanderbruggen (pictured), who led the team which handled the matter, noted: “We are very pleased with the result. The first time is always a bit difficult. That is also true in the dynamic environment of Myanmar’s legal framework in full transition. It’s tough, but also very interesting. Anyway, the door is open, now, so it should be easier for the next financing deals”.
VDB Loi opened in Myanmar in 2012 and now has 40 lawyers and advisers working from their offices in Yangon and Nay Pyi Taw. The Myanmar team is widely recognized for its expertise in foreign investment, corporate M&A, TMT, real estate, taxation and energy. The firm also has offices in Cambodia, Indonesia, Laos and Vietnam.