IFC mulls extending $25m loan to Nepal’s NMB Bank

Patan Durbar Square, Patan, Nepal/Photo Shaouraav Shreshtha/unsplash

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.