NepalPSW-Nirdhan Utthan Bank Limited (IFC-40193)

Countries
  • Nepal
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 20, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Nirdhan Utthan Laghubitta Bittiya Sanstha Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 19, 2019

Disclosed by Bank May 15, 2019


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Project Description

According to the bank website, the proposed project involves a debt investment in Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (“Nirdhan” or the “Bank”, formerly known as Nirdhan Utthan Bank), operating in Nepal with a borrower base of more than 338 thousand women borrowers and a loan portfolio of approximately US$155 million as of January 2019. Nirdhan is a leading retail Microfinance Institution (MFI), and provides microfinance services such as loans, deposits, micro-insurance and remittance services to low income households of Nepal. Nirdhan follows the Joint-Liability Group (JLG) lending model. IFC’s proposed investment will help the company to expand microfinance, including to Very Small Enterprises (VSEs), in the underserved regions and population segments in Nepal.

Investment Description
  • International Finance Corporation (IFC)

According to IFC, Nirdhan was set up in 1998 by Dr. Harihar Dev Pant. The Bank is a listed entity, listed on Nepal Stock Exchange and 49% shareholding is held by public. Institutional investors and promoters hold 51% shareholding in the Bank, including 3 commercial banks- Nabil Bank Limited, Himalayan Bank Limited, and Everest Bank Limited that together hold 24.62%, Nirdhan NGO and Grameen Trust Bangladesh (11.01%), IFC (7.54%) and the remaining 7.83% by private individuals.

Private Actors
Contact Information

Nirdhan Utthan Laghubitta Bittiya Sanstha Limited
Janardan Dev Pant, CEO
+977-1- 4413711
info@nirdhan.com.np
Nirdhan Bhawan Bhagwatibahal, Naxal -1 Kathmandu, Nepal
www.nirdhan.com.np

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/