NMB BANK LTD NEPAL (FMO-50569)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • Nepal
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
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
Sep 14, 2016
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
NMB Bank Limited (NMB)
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)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 42.33 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported NPR 2829.42 MLN
Converted using 2016-09-14 exchange rate.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jul 7, 2018


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to FMO website, NMB Bank Limited (NMB) 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. will 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 refining its new strategy. Also FMO will assist NMB to become market leader in managing E&S risks and having a proper and strengthened corporate governance structure in place with TA support. NMB is very open to learn from FMO’s network and understands the potential cross-pollination. Further to this, being part of on-the-ground energy focused bank in this promising hydro energy country will enhance FMO’s ambition to have a positive environmental impact. All in FMO’s role is substantial, but there is also an element of reputational and expectations risk that should be carefully managed.  

Investment Description
  • Netherlands Development Finance Company (FMO)
Private Actors

NMB Bank Limited (NMB) 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, hydropower and project financing, that form the crux of economic development of the country. In 2015, CEDB (FMO investee company) and three smaller banks, Pathibara, Bhrikutee, and Prudential, were merged into NMB. Pursuant to which, FMO received shares of NMB.

Contact Information

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism