NMB BANK LIMITED
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
NMB Bank Limited ("NMB" or "the Bank") is licensed as “A” class financial institution by Nepal Rastra Bank, the central bank in Nepal. This means that NMB is among the largest and most well-established banks in Nepal. As a leading commercial bank in Nepal, it provides various banking services to its customers throughout the country. The Bank is listed on the Nepal Stock Exchange with 49% ownership publicly traded and 51% held by the promotors. FMO is the largest shareholder (13.69%) of the Bank.
What is our funding objective?
With this loan, FMO and the Dutch Fund for Climate and Development (DFCD) will support the growth of NMB’s Micro, Small and Medium Enterprises (MSME) and green portfolio.
Why do we fund this investment?
Firstly, FMO strives to support emerging markets like Nepal with an aim to reduce inequalities in these countries. Secondly, providing financing to small and medium enterprises in Nepal will contribute to FMO’s strategic goal of supporting economic growth and job creation. Thirdly, FMO’s support for green financing is contributing to reducing CO2 emissions in the country, which is aligned with NMB’s strategy of adopting sustainable banking practices.
What is the Environmental and Social categorization rationale?
E&S risk category A due to the exposure to high-risk sectors including but not limited to hydropower, construction, cement, agriculture and manufacturing. NMB operates in a high contextual risk environment, where main risk pointers are climate change, decent work conditions (incl. risk of child labour) and discriminatory practices against minorities. NMB has a dedicated E&S team, an IFC PS-aligned E&S Management System and grievance redress mechanisms for internal and external stakeholders. FMO’s financing includes an action plan to further strengthen E&S and climate risk management, stakeholder engagement and implementation capacity.
More investments
| Date | Total FMO financing |
|---|---|
| 9/8/2023 | USD 10.00 MLN |
| 8/14/2019 | EUR 0.14 MLN |
| 9/14/2016 | NPR 3041.94 MLN |
- Website customer/investment
- https://www.nmb.com.np/individual
- Region
- Asia
- Country
- Nepal
- Sector
- Financial Institutions
- Publication date
- 9/20/2023
- Effective date
- 9/8/2023
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A