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ADB, NMB Bank Partner to Support More Trade in Nepal

News from Country Offices | 20 September 2019

KATHMANDU, NEPAL (20 September 2019) — The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and NMB Bank Limited, a leading commercial bank in Nepal, today signed an agreement to provide guarantees supporting trade in the country.

“We are pleased to welcome NMB Bank as the latest TFP issuing bank in Nepal. We look forward to working closely with NMB in the future, especially in supporting the import of commodities and industrial raw materials that will help feed Nepal’s renewed economic activity,” said ADB Investment Specialist and Relationship Manager for Nepal Ms. Janet Hyde.

ADB’s TFP has been operating in Nepal since 2009 and is working with 4 partner banks. To date, the program has conducted more than 200 transactions in Nepal, supporting $82 million in trade and benefiting more than 80 small and medium-sized enterprises (SMEs) in a wide range of sectors including agricultural commodities, construction materials and machinery, solar panels, and textiles.

“NMB Bank has been focused on sustainable banking and we are certain that the credit line extended to the bank shall be utilized in sectors that shall support in the long-term economic development of the country,” said NMB Bank’s Chief Executive Officer Mr. Sunil K.C.

Backed by ADB's AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia and the Pacific to engage in import and export activities. Since 2009, ADB’s TFP has supported more than 15,000 SMEs across developing Asia—through over 21,000 transactions valued at over $36 billion—in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.

In 2018, TFP grew almost 40% to support $6.2 billion in trade through 4,470 transactions.  TFP complements its financial support with knowledge products, including a study that quantifies market gaps for trade finance, initiatives to increase the role of women in banking, efforts to enhance environmental safeguards, and initiatives to fight crime through greater transparency in the global financial system. TFP also provides workshops and seminars to increase knowledge and expertise in matters related to finance, trade, risk management, and fraud prevention.

NMB Bank Limited has been operating in the Nepalese financial market for over 23 years and is one of the leading commercial banks in Nepal’s banking industry. The bank has a joint venture agreement with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), wherein FMO holds 17% of the bank’s shares and is the largest shareholder of the bank. NMB Bank has charted a road map focused on value-based and sustainable banking, which encompasses investments in renewable energy, hydropower, infrastructure, tourism, and agribusiness, all of which are key drivers for Nepal’s long-term economic growth. It is the only bank in Nepal to become a member of the Global Alliance for Banking on Values.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.