NMB Bank Limited
A large portion of investments from international financial institutions to Nepal have traditionally focused on the development of the nation’s hydropower sector. SIFEM’s loan to NMB Bank Limited, however, will give the Bank greater flexibility to provide long-term financing to micro, small and medium-sized enterprises (MSMEs). This constitutes an opportunity to support the overall resilience and recovery of Nepal's economy by promoting access to finance for businesses (SDG 9) and indirectly by supporting job preservation and job creation in the MSME sector (SDG 8).
This investment is also a pilot project for a new type of cooperation between SIFEM and the Swiss Agency for Development and Cooperation (SDC). The two partners have jointly elaborated a cooperation framework which allows for a first loss guarantee of up to 30% provided by SDC. With this risk buffer, SIFEM should be able to invest more in Least Developed Countries (LDCs) such as Nepal. The Federal Council’s Strategic Objectives for the period 2021-2024 require SIFEM to have at least 12% of its active commitments in Least Developed Countries (LDCs) and other Low-Income Countries by the end of 2024.