Siddhartha Bank borrows historic USD 55 million loan from International Finance Corporation

The bank was recently honored by the IFC as the Best Operations Bank in South Asia 2021.

KATHMANDU: Siddhartha Bank Limited, one of Nepal’s leading banks, has successfully obtained a landmark loan of USD 55 million from the International Finance Corporation (IFC). This loan marks the largest amount ever provided by the IFC to a Nepali bank, establishing a significant milestone for the country’s financial sector.

The IFC’s loan to Siddhartha Bank represents the first-ever foreign currency syndicated loan facility in Nepal’s banking industry, categorized as external commercial borrowing. The loan will be directed towards supporting the bank’s efforts in Micro, Small, and Medium Enterprises (MSME) development as well as climate financing initiatives.

With a strong emphasis on enhancing its MSME portfolio, Siddhartha Bank aims to utilize the loan to achieve its objective of bolstering support for small businesses. Additionally, the Bank shall also be using the loan for increasing its portfolio in climate-friendly projects which shall be financing energy efficiency projects such as solar projects, low carbon mobility projects such as electric vehicles, water efficiency projects, climate smart agriculture, manufacturing of energy efficient appliances, etc.

Recognized as a member of the IFC’s esteemed Global Trade Finance Program, Siddhartha Bank has demonstrated its commitment to operational excellence. The bank was recently honored by the IFC as the Best Operations Bank in South Asia 2021.

Driven by its vision of becoming a Digital First Bank for Sustainable Growth, Siddhartha Bank has continually focused on digitization and business process re-engineering. The bank has made sustainability a top priority, seamlessly integrating Environmental, Social, and Governance (ESG) aspects into its overall business strategy and practices. Siddhartha Bank maintains a dedicated Environmental and Social (E&S) unit, reflecting its commitment to leveraging financial power to create a sustainable impact for both present and future generations.

With assets valued at NPR 273.83 billion, a deposit base of NPR 216.96 billion, and a loan base of NPR 189.54 billion, Siddhartha Bank stands as one of the leading financial institutions in Nepal. The bank operates through an extensive network of 195 branches, 223 ATMs, and 1,744 point-of-sale (POS) terminals, strategically positioned across the country. Recently, the bank has relocated its corporate office to its new premises in Naxal, Kathmandu-1.

Siddhartha Bank extends its sincere appreciation to the Nepal Rastra Bank for its guidance and swift approval of this substantial borrowing. The bank remains steadfast in its commitment to utilizing financial resources to create a sustainable and impactful difference, not only today but also for generations to come.

 

Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

five × five =

Also like this