Nepal Investment signs loan mandate with IFC
Kathmandu, May 23
Nepal Investment Bank Ltd (NIBL) has signed a loan mandate with the International Finance Corporation (IFC).
The mandate was exchanged between Jyoti Prakash Pandey, CEO of NIBL and Mohammad Rehan Rashid, resident representative, country head of IFC, as per a media release.
The loan from IFC is subject to receiving approval from Nepal Rastra Bank (NRB). The bank's access to international funding is expected to bring some stimulus to current liquidity situation. The said fund shall be mobilised primarily to support priority sector industries as defined by NRB.
IFC's funding has played an important role in banking sector that has helped banks effectively increase their participation with more enterprises. Such collaborations with IFC would be mutually beneficial where domestic banks would get access to international funding which would help augment their business outreach, the release adds.
NIBL has also partnered with IFC, for trade finance facility of up to $5 million that has enabled the bank to enhance its support for local enterprises and help boost international trade opportunities. IFC, working with its partners, has sharply increased its trade financing efforts over the past years.