CDC makes debut Nepal investment

NMB is one of Nepal’s leading commercial banks, with 110 branches across the country serving more than 15,000 large and medium-sized businesses. According to a release, CDC’s investment, which is in the form of a three-year loan, is aimed at helping the bank grow its lending to small businesses as well as invest in key areas of the economy including infrastructure, agriculture, and tourism.

The loan by CDC follows recent reforms aimed at increasing the amount of capital available to Nepalese businesses and making the country more attractive for foreign investors. For example, last November the central bank raised the amount that Nepalese commercial banks could borrow from foreign institutions from 25% of core capital to 50%.

CDC announced in 2018 that it aims to invest $1.7 billion over the next three years in India and the broader South Asia region, which includes Nepal, Bangladesh, Pakistan, and Myanmar.

The DFI deepened its South Asia operation with the appointment last month of Stephen Priestley, formerly of Standard Chartered Bank, as a managing director and head of the intermediated equity and capital partnerships teams. The latter is a new initiative at CDC aimed at developing co-investment opportunities and risk-sharing partnerships with financial and strategic investors.

CDC has been an active investor in the region for decades, with recent activity including commitments to several private equity and venture capital funds. India’s Stellaris Venture Partners, Pi Ventures, and Lighthouse funds were among the recipients, along with Anthem Asia’s Myanmar fund. It has also made a number of direct investments, backing companies such as Indian non-banking finance company Veritas Finance and Pakistani e-commerce platform Daraz.

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• Topics
• South Asia
• Financials
• Credit
• CDC Group
• Financial Services
• development finance institution