Kathmandu: NMB Bank Ltd has obtained a loan of USD 25 million from the International Finance Cooperation (IFC)–a member of the World Bank Group–to promote small and medium enterprise (SME) financing in Nepal.
With this agreement, NMB Bank becomes the only Bank in Nepal to sign three debt investment deals with the IFC. The three investment deals equal worth USD 65 million for a span of four years, according to the bank.
The memorandum of understanding (MOU) has been signed by Sunil KC, Chief Executive Officer, NMB Bank Ltd and Hector Gomez Ang, Regional Director South Asia, International Finance Corporation.
“The funding will help promote market competitiveness while accelerating economic recovery from the impacts of the Covid-19 pandemic. The IFC’s investment is expected to help expand NMB Bank’s SME portfolio substantially by 2025 – creating a significant number of jobs over the next five years,” it said.
This loan amount shall be utilized to support the government of Nepal’s growth plans and shall be invested in strengthening the priority sector industries, especially SME/MSMEs, according to the bank.
Last year, ‘The Banker Magazine’ of The Financial Times, London awarded NMB Bank with the prestigious Bank of the Year Asia 2021.
The bank has also been awarded with Bank of the Year in 2017, 2018, 2020 and 2021. The bank is currently providing its services through 201 branches, 138 ATMs and 11 extension counters.