KATHMANDU, Dec 28: NMB Bank Limited has secured a USD 12 million debt investment deal with the Swiss Investment Fund for Emerging Markets (SIFEM).
The first-ever SIFEM investment in Nepal is expected to help NMB Bank in acquiring diversified fund sources to bolster its unique brand of sustainable banking. The investment deal was signed on November 28 between SIFEM and NMB Bank, with SDC extending credit enhancement to SIFEM on a risk sharing basis, mainly to cover macroeconomic risks.
As per the agreement, NMB Bank will utilize the SIFEM investment toward lending to local Micro Small and Medium Enterprises (MSMEs), providing much-needed access to finance and contributing to the development of the financial sector, preserving jobs, and boosting the resilience of the local economy.
Elisabeth von Capeller, ambassador of Switzerland to Nepal, said “Swiss Investment Fund for Emerging Markets’ debt investment in NMB Bank Limited marks the beginning of a new chapter in Swiss-Nepal cooperation. This investment will support increased access to finance for Nepali Micro Small and Medium Enterprises—the key drivers of Nepal’s economy,” reads a press statement.
Sunil KC, chief executive officer of NMB Bank said the deal will ensure that small businesses have access to uninterrupted cash flow to keep their businesses going.
SIFEM, established in its current form in 2011, is the development finance institution of the Swiss Confederation. SIFEM promotes long-term, sustainable and broad-based economic growth in developing and emerging countries by providing financial support to commercially viable small and medium-sized enterprises (SMEs) as well as fast-growing enterprises which in turn helps to create secure and permanent jobs and reduce poverty.