DFC invests in agriculture and boosts small businesses in Nepal

KATHMANDU: US International Development Finance Corporation (DFC) Vice President for Development Credit Jim Polan met with Laxmi Bank and other businesses supporting sustainable agriculture and food security in Nepal this week.

The meetings were part of a visit during which Polan and DFC officials engaged with private sector businesses promoting development in Nepal and throughout the region.

DFC recently committed a $45 million direct loan and a $2.5 million loan portfolio guaranty to Laxmi Bank. This will provide capital for on lending to micro, small, and medium enterprises (MSMEs) engaged in agribusiness in Nepal. DFC worked with the U.S. Government’s development agency, USAID/Nepal, to provide the loan portfolio guaranty.

In addition to Laxmi Bank, DFC is supporting additional financing projects for MSMEs in key sectors in Nepal to catalyze economic growth and development.

These include an equity investment in Dolma Impact Fund II to provide much-needed growth capital to Nepalese technology, healthcare, and renewable energy companies; and a $100 million direct loan to NMB Bank to address a significant financing gap for Nepalese MSMEs in the wake of the COVID-19 pandemic.

DFC currently has more than $160 million invested in Nepal and is looking to further increase its investment portfolio by supporting new developmental projects in the country and throughout the region.