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Banks (Finance)

IFC Invests $25 Million in NMB Bank to Boost Green Projects and SMEs

Strategic Insights

— 1 min read

The International Finance Corporation (IFC) has provided a $25 million loan to NMB Bank to increase financing for green projects and small and medium enterprises (SMEs) in Nepal. As part of the agreement, NMB Bank aims to expand its SME portfolio to over $1 billion by 2025, creating up to 50,000 jobs over the next five years. This project is expected to contribute to Nepal's economic growth by doubling the amount of loans available for SMEs and supporting the country's sustainable development.

Key Takeaways:

  • The IFC's loan to NMB Bank is expected to boost the bank's SME portfolio to over $1 billion by 2025.
  • The project aims to create up to 50,000 jobs over the next five years, primarily in the SME sector.
  • SMEs in Nepal have been a key driver of economic growth, contributing 20 percent of GDP and creating over 60 percent of jobs in the country.
  • The IFC has incorporated green loan principles into the loan agreement, making it the first climate-focused lending to a financial institution in Nepal.
  • The project is expected to increase access to green financing in Nepal over the next five years, trebling the amount of loans available for green projects.
  • The investment will also help NMB Bank build its capacity to identify and evaluate green lending opportunities.
  • SMEs in Nepal have been heavily affected by the COVID-19 pandemic, and this investment is expected to support the sector's recovery.
  • IFC estimates Nepal has climate-smart investment opportunities of $46 billion by 2030.

Statistics:

  • $25 million: The amount of the loan provided by the IFC to NMB Bank.
  • $1 billion: The target size of NMB Bank's SME portfolio by 2025.
  • 1,000,000 jobs: The estimated number of jobs that will be created over the next five years.
  • 20%: The contribution of SMEs to Nepal's GDP.
  • 60%: The percentage of jobs created by SMEs in Nepal.
  • 2030: The year by which IFC estimates Nepal will have climate-smart investment opportunities of $46 billion.

Sources:

  • EKantipur.com
  • Kathmandu Post
  • HT Digital Content Services
  • SyndiGate Media Inc. (Syndigate.info)
  • International Finance Corporation (IFC) press statement

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