Kathmandu: The Non-resident Nepali Association (NRNA) that had announced Rs 10 billion ‘NRN Nepal Development Fund’ plans to increase the fund’s capital to Rs 100 billion.
Speaking at a virtual event organized by the NRN-Canada recently, Dr Upendra Mahato, the Chairperson of the fund, shared that the fund has been established for investment in huge projects.
The plan is to increase the capital of the fund to Rs 100 billion in the near future, he shared.
According to Mahato, the fund has been established in a concept that Nepalis should invest in the development of their nation.
“As Nepal is on the path of development, a huge capital is needed for developing mega projects. It is not like NRNs were not investing in Nepal earlier, but the fund will bring all the investors together,” said Mahato, adding that the return of investment in Nepal is quite good in comparison to other countries.
Of the total capital, the government has invested five percent, while NRNA has invested 10 percent, and 85 percent is collected from non-resident Nepalis.
“The fund will be operated in the modality of a holding company. The fund will help to channelize remittance to the productive sector of the country,” said Anal Raj Bhattarai, Chief Executive Officer of the fund.
Of the total capital, the government has invested five percent, while NRNA has invested 10 percent, and 85 percent is collected from non-resident
According to NRNA, only non-resident Nepalis can invest in the fund. “A person of Nepali origin, Nepali citizens with permanent residency status of foreign countries, migrant workers, students pursuing abroad studies, and all individuals qualified as NRNs as per NRN Act can invest in the fund,” said Bhattarai during the event.
Stating that a huge number of investors are interested to invest, Mahato said that a cap of Rs 100 million has been set for investors.
“The investment cap has been set so that all NRNs can participate in the development of the nation,” he said. The minimum amount to invest in the fund has been set at Rs 2.5 million.
According to Bhrigu Dhungana, ambassador of Nepal to Canada, Nepal is on the path of development, and for the same a huge amount of capital resources is needed.
“The government of Nepal has put foreign direct investment in its top priority in sectors such as infrastructure, hydropower, communication, tourism, industry, mine, among others,” he said adding that Nepali missions have been working to bring FDIs in Nepal.
Stating that Nepal is an investment-friendly country, Dhungana said that the fund will bring capital throughout the world through a single channel for the development of the nation.
“The investment will surely help in the economic growth, increase productivity, and generate new employment opportunities,” ambassador Dhungana added.
The fund has also planned to open IPOs for non-resident Nepalis at the earliest.
According to Kumar Panta, president of the NRNA, Nepal is a country with a very good return.
“There has been a good return from the investment by NRNs in Nepal,” he said, adding that the project is not a charity, rather an investment opportunity for a good return for NRNs.
“The fund will be a milestone for economic growth in Nepal,” he added.
According to NRNA, the fund has already received commitments of Rs 3 billion from different sources including the government of Nepal.
“The fund has been established to invest in projects that are likely to improve standards of Nepalis and generate employment. The fund will also bring knowledge of Nepalis in foreign land to Nepal,” said CEO Bhattarai, adding that the fund will also encourage Nepali diaspora to participate in national development.
The fund will be listed in the Nepal Stock Exchange, he said.
“We are also in talks with merchant banks of Nepal to open Demat accounts of NRNs. We are holding talks to open Demat accounts for almost 1.2 million NRNs,” Bhattarai added.
The fund is aiming to bring the investment of almost 1.2 million NRNs to Nepal, concluded Bhattarai.