KATHMANDU, DECEMBER 8
US International Development Finance Corporation (DFC) Vice-President for Development Credit Jim Polan met with Laxmi Bank and other businesses supporting sustainable agriculture and food security in Nepal this week. The meetings were part of a visit during which Polan and DFC officials engaged with private sector businesses promoting development in Nepal and throughout the region.
DFC recently committed a $45 million direct loan and a $2.5 million loan portfolio guaranty to Laxmi Bank. This will provide capital for onlending to micro, small, and medium enterprises (MSMEs) engaged in agribusiness in Nepal. DFC worked with the US government's development agency, USAID/Nepal, to provide the loan portfolio guaranty.
In addition to Laxmi Bank, DFC is supporting additional financing projects for MSMEs in key sectors in Nepal to catalyse economic growth and development.
These include an equity investment in Dolma Impact Fund II to provide much-needed growth capital to Nepali technology, healthcare, and renewable energy companies; and a $100 million direct loan to NMB Bank to address a significant financing gap for Nepali MSMEs in the wake of the COVID-19 pandemic, as per a press statement.
DFC currently has more than $160 million invested in Nepal and is looking to further increase its investment portfolio by supporting new developmental projects in the country and throughout the region.
DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
DFC invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights, the statement adds.
A version of this article appears in the print on December 9, 2022, of The Himalayan Times.
