NMB Bank Limited is an “A” class financial institution that has been operating in the Nepalese financial market for twenty-six years and is one of the leading commercial banks in the country. In recognition of its continued commitment towards sustainable banking practices, digitization and corporate governance, the bank has been awarded with the prestigious Bank of the Year 2021, Asia award- the first Bank in Nepal to win such award. In addition to being adjudged the regional winner for Asia in 2021 by The Banker Magazine, London, UK. NMB Bank has also been adjudged the country level winner of the Bank of The Year awards in 2017, 2018, 2020 and 2021. Recently, NMB Bank Limited has secured a USD 12-million debt investment deal with the Swiss Investment Fund for Emerging Markets (SIFEM).
NMB Bank receives SIFEM Investment
The deal marks the first-ever SIFEM investment in Nepal, and also the first instance of cooperation between SIFEM and Swiss Agency for Development and Cooperation (SDC) to enable such an investment.
Nepal is a focus country of Switzerland’s development cooperation. The cooperation between SIFEM and SDC by leveraging expertise and synergies between Swiss institutions to advance development in Nepal is an important milestone in Switzerland’s longstanding partnership with Nepal. The deal also further reasserts the commitment of NMB Bank towards acquiring diversified fund sources to bolster its unique brand of sustainable banking, an event especially pertinent and important given the current market scenario.
Terms of the Deal
The investment deal was signed on 28 November 2021 between SIFEM and NMB Bank, with SDC extending credit enhancement to SIFEM on a risk sharing basis, mainly to cover macroeconomic risks. Under the terms of the deal, the SIFEM investment will be utilized towards lending to local Micro Small and Medium Enterprises (MSMEs), providing much needed access to finance and contributing to the development of the financial sector, preserving jobs, and boosting the resilience of the local economy.
NMB Bank’s investment deal with SIFEM is a continuation of its strategy to foster alliances with international stakeholders to diversify its fund sources. In the past, the bank has successfully secured repeat debt funding from the International Finance Corporation and from various other international lenders such as CDC Group, the OPEC Fund for International Development, and Symbiotics.
This investment deal, which marks the first SIFEM investment in Nepal, provides further drive to our commitment towards diversified fund sources and investing in the real economy sectors. In these challenging times this deal will ensure that small businesses have access to uninterrupted cash flow to keep their businesses going.Sunil KC, CEO of NMB Bank
About the Swiss Investment Fund for Emerging Markets (SIFEM)
SIFEM, established in its current form in 2011, is the development finance institution (DFI) of the Swiss Confederation. SIFEM promotes long-term, sustainable and broad-based economic growth in developing and emerging countries by providing financial support to commercially viable small and medium-sized companies (SMEs) as well as fast-growing enterprises which in turn helps to create secure and permanent jobs and reduce poverty. Learn more about SIFEM here.
The Embassy of Switzerland in Nepal is Switzerland’s official representation in Nepal and a part of the Federal Department of Foreign Affairs (FDFA). Switzerland through its development cooperation is engaged in Nepal since 1959, while the Embassy was established in 2009. The development cooperation is now an integrated section of the Embassy. Learn more about the Embassy here.