IFC mulls extending $20m loan to Nepal’s Sanima Bank

Kathmandu, Nepal. Photo by Laurentiu Morariu on Unsplash

The International Finance Corporation (IFC), a member of the World Bank Group, is proposing an investment of up to $20 million in Kathmandu-headquartered Sanima Bank, Nepal’s 15th largest bank in terms of total assets.

The proposed investment, which is a 3-year USD denominated senior loan, will be used to finance SMEs in Nepal and broaden the bank’s reach outside Kathmandu, IFC said in a disclosure.

“By improving access to finance for SMEs, the investment with Sanima is expected to create more jobs in the economy….increase the attractiveness of SME financing (including rural SME financing) for the banking sector and mobilize more domestic and international investment in this area,” the lender said.

Listed on the Nepal Stock Exchange, Sanima is one of the youngest commercial banks in Nepal. The promoter group owns 51% of the banks shareholding and consists of 71 individuals and 2 companies. The remaining 49% shares are held by the public. Out of the total promoter group, 11 shareholders own more than 1% share.

Last year, IFC provided a loan up to $10 million to NIC Asia Bank, the third-largest private sector commercial bank in Nepal in terms of asset size.

The proposed financing will help NIC Asia Bank support the working capital needs of its clients, especially small and medium enterprises (SMEs) in key sectors within Nepal’s economy.

In Kathmandu, IFC was also considering to dole out a $10-million senior loan to Nepal’s wholesale lending organisation RMDC Laghubitta Bittiya Sanstha, formerly known as the Rural Microfinance Development Centre.

Earlier, the global lender had proposed to invest up to $10 million in Nirdhan Utthan Laghubitta Bittiya Sanstha Limited, a Kathmandu-based retail microfinance institution.

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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.