Nepal’s NMB Bank has secured the country’s first SIFEM investment, worth USD 12 million.

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Swiss Investment Fund for Emerging Markets (SIFEM) has agreed to invest USD 2 million in NMB Bank through a debt investment agreement (SIFEM).

The first-ever SIFEM investment in Nepal is expected to aid NMB Bank in its efforts to acquire a diverse pool of funding sources in order to strengthen its distinctive sustainable banking brand. on November 28 between SIFEM and NMB Bank, the investment agreement provides for SDC to lend credit enhancement to SIFEM on a risk-sharing basis, primarily to offset macroeconomic risks.

According to the agreement, NMB Bank will use the SIFEM investment to lend to local Micro, Small, and Medium-Sized Enterprises (MSMEs), thereby providing much-needed access to finance and contributing to the development of the financial sector, as well as preserving and increasing the resilience of the local economy, among other things.

In a statement, Elisabeth von Capeller, the Swiss ambassador to Nepal, said, “The debt investment in NMB Bank by the Swiss Investment Fund for Emerging Markets represents the beginning of a new chapter in the collaboration between Switzerland and Nepal.” According to a news release, “this investment would promote expanded access to credit for Nepali Micro Small and Medium Enterprises (MSMEs), which are the key drivers of the countryR7;s economy.”

Sunil KC, the chief executive officer of NMB Bank, stated that the agreement will ensure that small businesses have access to continuous cash flow in order to keep their operations running smoothly.

SIFEM, which was founded in its form in 201, is the Swiss Confederation’s development finance institution. Through financial assistance to commercially viable small and medium-sized enterprises (SMEs) as well as fast-growing enterprises, SIFEM works to promote long-term, sustainable, and broad-based economic growth in developing and emerging countries while also assisting in the creation of secure and permanent and the of poverty.

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