NMB Bank secures $12 million loan investment from SIFEM Business 360

NMB Bank secures $12 million loan investment from SIFEM

File – This combo image shows Swiss Ambassador to Nepal Elisabeth von Capeller (left) and Sunil KC, Chief Executive Officer (CEO) of NMB Bank Limited,. Photo: swissinfo.ch/B360 Nepal

KATHMANDU: NMB Bank has secured a $12 million loan investment from Swiss Investment Fund Emerging Markets (SIFEM).

NMB Bank entered into an agreement with Swiss Investment Fund Emerging Markets (SIFEM) for the loan on November 28. The cooperation between SIFEM and the Swiss Agency for Development and Cooperation (SDC) played an important role in the loan agreement, which is the first of its kind in Nepal to attract investment from SIFEM.

Nepal is a priority country for Switzerland’s development assistance. This investment agreement made in collaboration between SIFEM and SDC using expertise and coordination among Swiss institutions to advance development in Nepal is a milestone in the history of Switzerland’s long partnership with Nepal.

For this loan from SIFEM, SDC has provided a facility to SIFEM on the basis of risk-sharing. This agreement reaffirms NMB Bank’s commitment to sustainable development by diversifying its sources of investment. The relevance of this agreement is still important, especially in the current market scenario.

The Bank will invest the loan proceeds from SIFEM mainly in the areas of providing loans to small and medium enterprises and increasing access to finance, contributing to the development of the financial sector, helping to increase employment and facilitating the local economy.

Swiss Ambassador to Nepal Elisabeth von Capeller said, “A new chapter in Nepal-Swiss cooperation has begun with SIFEM’s loan investment at NMB Bank. This investment will help increase the financial access of small and medium enterprises.”

Similarly, Chief Executive Officer (CEO) of NMB Bank, Sunil KC, highlighted the importance of the agreement and said, “The loan agreement, signed for the first time in Nepal to attract credit investment from SIFEM, has given further impetus to our commitment to investing in the real economy. This agreement will help small businesses to have uninterrupted access to cash flow in order to sustain their business in the current challenging times.

This agreement between NMB Bank and SIFEM is the continuation of the former’s strategy of enhancing cooperation with international stakeholders by diversifying its investment sources. Like in the past, NMB Bank has been taking out loans from international institutions including International Finance Corporation, CDC Group, OPEC Fund for International Development and Symbiotics, and investing in priority sectors as prescribed by Nepal Rastra Bank (NRB).

 

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