LS Senior Loan (IFC-50986)

Countries
  • Nepal
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 15, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Laxmi Sunrise Bank Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 25, 2025

Disclosed by Bank Jul 8, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed investment is a 3-year, US dollar (US$)-denominated, amortizing senior loan of up to US$20 million to Laxmi Sunrise Bank Limited (LSL), the sixth-largest private commercial bank in Nepal. Approximately 50% of the loan proceeds will be allocated for on-lending to micro, small, and medium-sized enterprises (MSMEs) in Nepal, including underserved rural MSMEs, while at least 50% (US$10 million) will be earmarked for climate financing (the Project). The Project aims to support the recovery of small businesses that have been disproportionately affected by the COVID-19 pandemic and subsequent economic slowdown through its MSME-focused use of proceeds. Additionally, the Project’s green financing component will help expand the Bank’s portfolio of eligible climate finance assets, with a focus on renewable energy (beyond hydropower projects) and electric vehicles, contributing to Nepal’s sustainable development goals.                                                   

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The lending business of the Laxmi Sunrise Bank Limited (LSL or the Bank) involves full spectrum of long-, medium- and short-term products for corporate finance, project finance, MSMEs, syndications, and several commercial and consumer retail products. IFC loan is targeted towards MSMEs (50%) and Climate (50%). The asset class to be supported by IFC could include sectors like construction and manufacturing with industries ranging from cement, brick kilns, and utility scale solar projects. The potential E&S risks within these sectors include labour working conditions including accommodation, legal non-compliance and community impacts, occupational health and safety concerns, especially regarding contractors, Gender-Based Violence and Harassment (GBVH), supply chain issues and pollution and waste management. Hence, the E&S risk of the proposed investment is medium, and the Project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The project is a 3-year, US dollar (US$)-denominated, amortizing structure senior loan of US$20 million. The project is intended to be used for on-lending to micro, small, and medium enterprises (SMEs) in Nepal with a 50% carveout for green financing.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Laxmi Sunrise Bank Limited (LSL) is a Class “A” commercial bank in Nepal, formed on July 14, 2023, through the merger of Laxmi Bank (established in 2002) and Sunrise Bank (established in 2007). LSL is the sixth-largest commercial bank in Nepal, with total assets of USD 3.1 billion as of April 2025. LSL is listed on the Nepal Stock Exchange with a public float of 48.95% and the remaining owned by promoters.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Laxmi Sunrise Bank Limited
Mr. Piyush Raj Aryal
Chief Financial Officer (CFO)
+977-1-4544684/685
piyush.aryal@laxmisunrise.com
P.O. Box: 19593, Laxmi Complex, Hattisar Kathmandu Metro – 1, Kathmandu, Nepal
www.laxmisunrise.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works