KATHMANDU, June 12: International Financial Corporation (IFC), a member of the World Bank Group, has said that it was investing US$ 7.3 million into Business Oxygen (BO2) -- a private equity fund.
Issuing a statement, the World Bank Group said that its investment arm has increased its financing to BO2 for financing small businesses in Nepal to help them cope with climate change.
According to the statement, the investment is being made through two funds managed by IFC, financed by the Climate Investment Funds and the United Kingdom's Department for International Development (DFID).
IFC has previously provided $7 million of its own funds to BO2 in 2015. "In this fresh round of financing, DFID brings in $3.7 million while the Climate Investment Fund's Pilot Program for Climate Resilience contributes $3.6 million," the World Bank said in the statement
The BO2 investment is part of IFC's SME Ventures program for low-income countries where such funding is not available because of the risk profile and difficult operating conditions.