FMO boosts stake

KATHMANDU: FMO, the Dutch development bank, has increased its stake in NMB Bank.

FMO increased its equity investment in the company from three per cent to 20 per cent, according to a press statement. The investment is aimed at contributing in strengthening of the financial sector in Nepal.

In October 2015, NMB merged via a share swap with FMO’s investee Clean Energy Development Bank Ltd (CEBDL) and two smaller banks Bhrikutee Development Bank and Pathibara Bikas Bank and Prudential Finance Company. The merger was strongly driven and supported (for more than four years) by FMO through intensive and persuasive guidance by its nominee board directors and shareholders’ representatives with the intention to create a bigger platform for strengthening the financial support for the renewable energy sector in Nepal.

After the merger, FMO’s stake diluted from 14 per cent to three per cent. This transaction entails an additional equity investment increasing FMO’s stake to 20 per cent.