The International Finance Corporation (IFC), a member of the World Bank Group, has announced a partnership with Himalayan Bank to enhance support for local enterprises in Nepal. This is the IFC’s third trade finance deal in Nepal.
Under the partnership, the IFC is providing US$3mn to Himalayan Bank under its global trade finance programme, in a bid to increase Nepal’s share in global trade. Himalayan Bank will utilise this support to foster overseas trade, mainly exports.
IFC’s trade finance programme will provide Himalayan Bank with risk coverage in a difficult market and access to a global network that will help grow its trade finance business. The network facilitates transactions in challenging markets, promotes competitive financing, and builds correspondent bank relationships with new institutions at low risk.
“Access to the network will increase our trade finance opportunities globally and help customers of Himalayan Bank obtain easy and cost-effective international finance services,” says Ashoke SJB Rana, CEO of Himalayan Bank.
Per Kjellerhaug, IFC regional manager for Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka, comments: “IFC’s support to the bank aligns with our strategy to encourage local partners committed to developing Nepal’s corporate and small and medium enterprise sector. The facility will open doors for trade with neighbouring countries and where the bank has no trade finance relationships.”
IFC has had a strong relationship with Himalayan Bank since 2006. IFC recently helped introduce value-added advisory services for Himalayan Bank’s small and medium enterprises business.
Since 1975, IFC has committed over US$80mn in nine projects in Nepal. Currently, IFC has an exposure of over US$35mn in the country in equity, debt and guarantees, with exposure to private infrastructure exceeding US$28mn. In 2008, IFC committed US$10mn in new investments.
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