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- 2024
- OPEC Fund provides US$25 million loan to Global IME Bank to support small businesses and enhance climate resilience in Nepal
OPEC Fund provides US$25 million loan to Global IME Bank to support small businesses and enhance climate resilience in Nepal
June 25, 2024: The OPEC Fund for International Development (the OPEC Fund) signed a US$25 million loan agreement with Global IME Bank Limited in Nepal to increase access to financing for micro, small, and medium enterprises (MSMEs), including women-owned enterprises, as well as climate-smart projects.
The OPEC Fund’s loan will help address significant financing gaps for MSMEs, which make up 95 percent of Nepal's registered businesses and account for 45 percent of all jobs. Despite their importance, MSMEs struggle to receive funds and the financing gap for these enterprises is estimated at US$3.6 billion. Additionally, the loan will enhance GIBL’s climate finance portfolio, vital for Nepal's efforts to mitigate climate change impacts.
OPEC Fund President Abdulhamid Alkhalifa said: “We are delighted to partner with Global IME Bank to bolster support for MSMEs and climate-smart projects in Nepal. These sectors are crucial for sustainable economic growth and resilience against climate change. Our loan will help address the significant financing gaps and promote inclusive development.”
Chief Executive Officer of Global IME Bank, Ratna Raj Bajracharya, said, "This loan agreement reinforces our commitment to finding local solutions through climate and gender financing to achieve global sustainability and inclusivity goals. We aim to bridge the resource gap in Nepal's green energy sector and address gender disparity by empowering women economically through accessible financing."
"We are grateful to partner with the OPEC Fund in this endeavor. This collaboration will enhance our support for MSMEs, vital to Nepal's economy, and strengthen our efforts in promoting climate resilience and sustainable development. Together, we can significantly impact Nepal's journey towards a greener and more inclusive future."
Nepal ranks 94th globally in CO2 emissions, with half of its greenhouse gas emissions coming from the agriculture sector. The country is highly vulnerable to climate change impacts, which disproportionately affect vulnerable communities. Increasing access to climate finance is essential for Nepal’s sustainable development, supporting initiatives such as clean transportation, climate-smart agriculture, and solar projects.
The OPEC Fund and Nepal have a long-standing partnership focused on driving sustainable development. The OPEC Fund has committed funding to various sectors including banking, energy, agriculture, transportation, and education.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
About Global IME Bank Limited:
Global IME Bank is the first commercial bank in the private sector with a network of branches available in every district of Nepal. It has been providing all kinds of banking services to more than 46 million customers through 1,100 plus service centers including 354 branch offices, 384 ATMs, 277 branchless banking services, 69 extension and revenue collection counters as well as 3 foreign representative offices located at London, UK, Sydney, Australia and New Delhi of India.
Likewise, the bank has been contributing significantly to the country's economy by bringing in remittances from about 60 countries of the world including United States of America, United Kingdom, Canada, Australia, Malaysia, South Korea, Japan, Saudi Arabia, Qatar, UAE, Bahrain, Kuwait, India, Jordan, Hong Kong, etc.