KATHMANDU: Siddhartha Bank Limited has secured a 40 million US dollar risk-sharing facility from the International Finance Corporation (IFC), a member of the World Bank Group, to expand lending to small and medium enterprises. The facility is equivalent to approximately 6.14 billion rupees.

The agreement was signed under the Small Loan Guarantee Program (SLGP). Under the terms, the IFC will share 50 percent of the risk on eligible loans provided by the bank to micro, small, and medium enterprises (MSMEs) across Nepal.

This marks the first risk-sharing initiative launched by the IFC in the country. The facility is supported by a portfolio guarantee under the International Development Association’s private sector blended finance facility.

Siddhartha Bank CEO Rameshwor Prasad Basyal stated that the partnership would enhance the bank’s capacity to extend credit to small and medium businesses.

He said, ‘The 40 million US dollar risk-sharing facility with the IFC will make a significant contribution to our MSME lending expansion. It will further strengthen our ability to provide financial support to small businesses across the country that are facing a challenging economic environment.’

The bank aims to maintain prudent lending standards while fostering entrepreneurship, creating jobs, and contributing to inclusive economic growth. Siddhartha Bank and the IFC have a long-standing partnership.

The bank joined the IFC’s Global Trade Finance Program in 2014 and secured a 55 million US dollar syndicated loan facility in 2023, which was the first foreign currency syndicated loan in Nepal’s financial sector. The IFC has also collaborated with the bank on institutional capacity building regarding risk management, gender finance, digital finance, and climate finance.