The International Finance Corporation (IFC) has proposed to extend a loan of up to $25 million to NMB Bank Limited, Nepal’s 7th largest private sector commercial bank in terms of asset size, according to a disclosure.
The proceeds from the loan will be used to support the bank’s lending programme to SMEs. Nearly $6.25 million of the loan sum will also be earmarked for green sub-projects.
Headquartered in Kathmandu, NMB offers services including corporate banking, retail banking, M/SME, microfinance, cash management, remittance, payment solutions, trade finance, treasury and correspondent banking, and bank guarantee.
The bank is listed on the Nepal Stock Exchange with 49 per cent of ownership publicly traded and widely held. Dutch lender FMO is the bank’s largest shareholder with a 14.18 per cent stake and Employees Provident Fund (EPF) is the second-largest shareholder with a 5.72 per cent stake.
The bank has two subsidiaries including NMB Capital Limited and NMB Microfinance Bittiya Sanstha Limited and operates 164 branches across Nepal.
According to IFC, this investment will increase in accessibility of financing for NMB’s SME clients and reduction of GHG emissions in Nepal through financing extended by NMB to green sub-projects.
IFC invested $15 million in NMB Bank in 2018.
In January this year, IFC also proposed a $20 million investment in Kathmandu-headquartered Sanima Bank, which is the country’s 15th largest bank in terms of assets.
The international bank had earlier also proposed to extend a loan up to $10 million to NIC Asia Bank, the third-largest private sector commercial bank in terms of asset size.