IFC approves a 55 million dollar loan to Siddhartha Bank

KATHMANDU: The International Finance Corporation (IFC) loaned $55 million to Siddhartha Bank Limited (SBL).

This loan amount may be the largest one the IFC has ever given to a Nepali bank. The loan from the IFC is the first ever foreign currency syndicated loan facility in the financial industry designated as external commercial borrowing for a Nepali bank.

The loan provided by the IFC will be used for MSME and Climate Financing, according to a press release issued by the SBL.

The SBL has been concentrating on expanding its portfolio of MSME loans. According to the bank, the loan will assist in achieving its goal.

The SBL will also use the loan to expand its portfolio of climate-friendly projects, including financing solar energy projects, water efficiency projects, climate smart agriculture, and the production of energy-efficient appliances, among others.

The SBL, a participant in the Global Trade Finance Program of the IFC, was recently recognized by the IFC as the Best Operations Bank in South Asia 2021. It has been continuously emphasizing digitization and business process re-engineering in an effort to become the Digital First Bank for Sustainable Growth.

The SBL has assets worth Rs 273.83 billion and a deposit base worth Rs 216.96 billion. Loans from the bank total Rs. 189.54 billion. Across the nation, it runs 195 branches, 223 ATMs, and 1,744 POS.