NMB Bank Limited has obtained a repeat loan of USD 25 million from the International Finance Corporation (IFC), a member of the World Bank Group. With this agreement, NMB becomes the only Bank in Nepal to sign three debt investment deals with IFC, which are worth $65 million in total and that too within a span of four years.
The signing of the MOU took place today, that is, the 11th of August, 2022 between Mr Sunil KC the Chief Executive Officer of NMB Bank Limited and Mr Hector Gomez Ang, Regional Director South Asia, International Finance Corporation (IFC).
In 2020, the international organization stated that “SMEs have been a key engine of growth in Nepal, contributing 20% of GDP and creating over 60% of jobs in the country. The project is expected to see a doubling in the number of loans available for SMEs from the bank, creating more jobs in the economy.”
It has been highlighted that even this year the funding will once again be used to aid in fostering market competitiveness while quickening the economy’s recovery from the effects of the COVID-19 pandemic.
The investment is anticipated to significantly increase the bank’s SME portfolio by 2025, generating a sizable number of jobs during the following five years.
IFC is the largest organization dedicated solely to the development of the private sector, and a member of the World Bank Group. The organization employs its resources, knowledge, and clout to support private businesses in more than 100 nations in their efforts to end extreme poverty and improve economic conditions. The organization has always placed an emphasis on improving the lives of people living in developing nations.
About NMB Bank
NMB Bank Limited is a commercial bank operating in the Nepalese Financial market for over nineteen years. The bank has received the coveted Bank of the Year Asia 2021 award from “The Banker Magazine” of The Financial Times, London. Additionally, the bank received the Bank of the Year award in 2017, 2018, 2020, and 2021. 201 branches, 138 ATMs, and 11 extension counters are now used by the bank to deliver its services.
IFC has collaborated with NMB Bank since 2015 through a facility set up under the Global Trade Finance Program, and in 2018 IFC offered a loan for a working capital solution. The organization has provided multiple funds over the years to the bank in hopes to help make a breakthrough in terms of economic development as well as helping boost the growth of SMEs.
In 2021, the bank received the “Green Deal of the Year” Award at the 2021 ABF Corporate and Investment Banking Award for its groundbreaking loan agreement with the International Finance Corporation (IFC), under which it would offer credit facilities to projects that meet the eligibility requirements of the organization for green financing, the bank has been acknowledged as Nepal’s leading proponent of green financing.
The honour highlights the bank’s dedication to sustainable banking and ongoing support for initiatives that promote entrepreneurship and the environment.
The loan proceeds of USD 25 million this year will be used to support the ambition of the government of Nepal for economic expansion and will be put toward supporting priority sector industries, particularly SME/MSMEs.