The Asian Development Bank’s Trade Finance Program (TFP) and Laxmi Bank signed an agreement on July 30 to provide loans and support trade in the country. During the signing, Laxmi Bank’s CEO Ajaya Bikram Shah said, “Laxmi Bank is pleased to join ADB’s Trade Finance Program as the third member bank from Nepal after completion of on-site and off-site due diligence of our financials, asset quality and operations. Laxmi Bank is already a major provider of trade finance services for Nepali SMEs, corporate, institutions and infrastructure projects. Access to this new facility will further strengthen our ability to conduct large value or complex international trade transactions. We believe this will directly benefit our clients by enhancing their acceptance in the international market especially at a time when the country is pursuing economic growth led by private sector investments in national priority sectors.”
ADB’s TFP has been operating in Nepal since 2009 and currently works with two local partner banks. Till date, the program has conducted more than 200 transactions in Nepal, supporting $82 million in trade and benefiting more than 80 SMEs in a wide range of sectors including agricultural commodities, construction materials and machinery, solar panels and textiles.
ADB Investment Specialist and Relationship Manager for Nepal, Janet Hyde also stated that the new facility will assist the country’s reconstruction efforts by supporting trade flows into the country, especially those involving small and medium-sized enterprises.
