FMO, the Dutch development bank has increased its stake in NMB Bank Limited in Nepal. FMO increased its equity investment in the company from 3% to 20%. The investment will contribute to the strengthening of the financial sector in Nepal.
In October 2015, NMB merged via a share swap with FMO’s investee Clean Energy Development Bank (CEDB) and two smaller banks Bhrikutee Development Bank and Pathibara Bikas Bank, and Prudential Finance Company Ltd. The merger was strongly driven & supported (for more than 4 years) by FMO through intensive and persuasive guidance by its nominee board directors and shareholders’ representatives with the intension 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% to 3%. This transaction entails an additional equity investment increasing FMO’s stake to 20%.
This investment is of strategic importance as it allows FMO to further contribute and strengthen the financial sector (rural and urban) and indirectly continue to support the renewable energy in Nepal. FMO will continue to create value to NMB by providing guidance in the challenging integration progress and with further fine -tuning its new strategy. Also FMO will assist NMB to become market leader in managing environmental & social risks and will continue to strengthen NMB’s corporate governance through a substantial technical assistance programme.
Linda Broekhuizen, Chief Investment Officer of FMO said: “FMO is proud to be a pioneer DFI investor to actively support the financial sector in Nepal, thereby enabling much needed investments in the renewable energy sector decreasing CO2 emissions, while helping this beautiful country grow its economy.”
Speaking on the occasion, Pawan Kumar Golyan, Chairman, NMB Bank said: “This is an important milestone for NMB Bank, which positions the Bank with stronger foothold in supporting projects that will not only impact the industry segments that we invest in, but will also be a catalyst in shaping economic growth in the country.”
FMO has been active in Nepal for many years and has been building on its reputation, network and relation with the Central Bank of Nepal (NRB) since it invested in Clean Energy Development Bank in 2008. NMB recently became member of the Global Alliance for Banking on Values and is very eager to reap the benefits of FMO’s international network.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. For45 years, FMO has been investing in the private sector in developing countries. We believe in a world in 2050 where nine billion people can live well and within the boundaries of the planet. In pursuit of this vision, our mission is to empower entrepreneurs to build a better world. We specialize in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 9.2 billion, FMO is one of the largest bilateral private sector development banks. www.fmo.nl
About NMB Bank Limited:
NMB Bank Limited is one of the leading commercial banks in Nepal, operating for over 20 years in the Nepalese financial market. The Bank has added focus in renewable energy, hydro power and project financing, that form the crux of economic development of the country.We believe in constantly innovating our products and services so as to exceed customer expectation, be the Bank of choice and eventually the market leader. www.nmb.com.np
Press contact NMB Bank:
Pooja Ghalay
Manager – Corporate Affairs
T: +977 1 4246160
M: +977 9851195970
E: pooja.ghalay@nmb.com.np
