KATHMANDU, Oct 28: The Non-Resident Nepali Association (NRNA) has committed to establish and implement a development fund of Rs 10 billion that will enable Non-Resident Nepalis (NRNs) to invest in Nepal through primary shares.
Addressing the session of the annual general meeting of the NRNA titled ‘Paving the Path for Economic Transformation of Nepal’ organized by the NRNA International Coordinating Council, president of the NRNA Dr Badri KC said that development fund was established to pave the way for Nepalis living abroad to make legitimate investments in Nepal. He said that the development fund will be initiated after the release of the guidelines by the Nepal Securities Board.
NRNA expedites preparations to set up a Rs 10 bn fund for inves...
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“The fund has been conceptualized to avoid situations where NRNs have to invest secretly from abroad,” President KC said, “With the facilitation of the Securities Board of Nepal (SEBON) and Nepal Rastra Bank (NRB) in the last six months, the development fund is expected to be implemented in a few days.”
Addressing the program, Minister of Industry, Commerce and Supplies Damodar Bhandari said that a number of laws have been amended to bring in investments by NRNs. He stated that the investment priorities in Nepal have been clarified repeatedly and mentioned that the door of investment by NRNs is now open.
“In Nepal, there are investment opportunities in sectors such as hydropower, information technology and manufacturing industries,” Minister Bhandari said, “We appeal to the NRNs to start investing quickly as the priority given to NRNA by the government might not be repeated by future governments.”
Addressing the NRNA Global Conclave, Acting Chairman of the SEBON Mahesh Baral said that Nepal’s capital market is ready to bring in investments from NRNs. “The fund of Rs 10 billion was advanced rapidly from 2022,” Baral said, “The guidelines have been sent to the NRB for approval after including the suggestions of all government agencies.” He mentioned that the development fund will be successful if Rs 5 billion is raised from NRN investors.
As per the Chief Executive Officer (CEO) of NRNA Development Fund Dr. Anal Raj Bhattarai, the issuance of primary shares will start as soon as the guidelines are issued by the SEBON. “We can issue an Initial Public Offering for the NRNs in six months after the SEBON issues the guidelines,” CEO Bhattarai said, “The purpose of the fund is to prioritize the infrastructure sector.”
