BNB Bhutan

completed

The Project comprises an equity investment of up to 20% in Bhutan National Bank (“BNB” or the “Bank”). The Bank was established in 1996 by the Government of Bhutan as the second commercial bank in the country, to promote growth and competition in the financial sector. BNB is currently the largest of Bhutan’s five banks in terms of credit market share. As of September 30, 2012, BNB had assets of US$442 million, outstanding portfolio of US$ 306 million, and capital fund of US$82 million.The proposed project will be IFC’s first equity investment in Bhutan. The proposed investment is strongly aligned with IFC’s South Asia regional strategy, as it involves expanding outreach and financial inclusion as well as promoting sustainable and competitive private sector development in a frontier market in South Asia. Through this investment, IFC will provide BNB with access to international best practices in operational areas and help the Bank develop a more robust and scalable business model. In parallel, IFC is also proposing an Advisory Services engagement to build the Bank’s capacities in risk management, strategy and business planning for the micro, small and medium enterprise (MSME) sector, as well as IT business integration and MIS strategy.