In brief
Siddhartha Bank is currently among the 10 largest banks in Nepal, with a network of almost 200 branches spread across the country, including many remote areas. Finnfund’s loan proceeds will be used to facilitate loan portfolio growth, specifically Siddhartha’s MSME, agribusiness, and hydropower loan portfolios.
Main development impact
Finnfund’s investment will enable the bank to increase financing to MSMEs, agriculture and hydropower. MSMEs are the key pillar of Nepal's economy, contributing 22% of GDP and employing 2.8 million people out of Nepal’s population of 28.6 million people, of which 80% live in rural areas. Lack of adequate electricity is a barrier to higher economic growth in Nepal and increasing access to electricity has the potential to yield economic dividends. Siddhartha Bank has overcome some of the challenges related to financing these sectors, and financial inclusion is an important element in Siddhartha Bank's operations.Investment details
| Name: | Siddhartha Bank |
|---|---|
| Project number: | 80000425 |
| Region: | Asia |
| Country: | Nepal |
| Sector: | Financial institution |
| Signing date (month/year): | August 2024 |
| Currency: | USD |
| Finnfund's financing (commitment): | 10,000,000 |
| Instrument: | Loan |
| Size of the project financing: | USD 20,000,000 |
| Share of Finnfund's financing (%): | 50 % |
| Status: | Active |
| Website: | https://www.siddharthabank.com/ |
Please note, that in principle, this information is given at the time of signature according to Finnfund's disclosure policy. However, in the case of investment funds, the share of Finnfund’s financing (%) is disclosed after the fund’s final closing, and information on the portfolio companies financed by the fund is updated at least once a year.
