KATHMANDU, Dec 19: It has been almost two years since the establishment of Nepal Infrastructure Bank Limited (NIFRA) with a larger capital than other banks in Nepal. The Bank, which has the main objective of accelerating the infrastructure development, had started its financial transactions on 2075 BS by obtaining a license from Nepal Rastra Bank.
The bank, which does not accept small deposits, has so far invested Rs 8.35 billion. Many of these loans have been invested in hydropower projects.
The bank said there was an increasing demand for loans for hydropower projects even amid the coronavirus pandemic. According to the bank, there is demand for investment in solar energy, cement and hotel industry after hydropower.
The bank has so far invested Rs 5.40 billion in four 110 MW hydropower projects and Rs 1 billion in 20 MW solar power projects. Similarly, the bank has invested Rs 1.5 billion in the cement industry and Rs 450 million in five-star hotels under construction.
NIFRA has been established with the investment of the government, commercial banks, insurance companies, public and private companies and reputed businessmen to accelerate the infrastructure development and reduce the financial deficit for development works.
NIFRA has an capital of Rs 40 billion and an issued capital of Rs 20 billion. The paid-up capital has been fixed at Rs 20 billion. The current paid-up capital is Rs 12 billion, but by issuing ordinary shares worth Rs 8 billion to the public, the paid-up capital will reach Rs 20 billion.
The bank is waiting for the persmission of Securities Board of Nepal (SEBON) for the issuance of public share. NIBL Capital has been appointed as the IPO Issue and Sales Manager.
