GBIME Nepal SME

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                           The proposed investment comprises of a US$56 million investment through a 3-year USD denominated senior loan to Global IME Bank (GIBL or the Bank), to be used exclusively for on-lending to small and medium enterprises (SMEs) in Nepal (the Project) with US$14 million carveout for green financing and US$14 million carveout for gender financing. Of the US$56 million, US$26 million will be through mobilization. GIBL is a fast-growing commercial bank with a strong retail and small and medium enterprise (SME) segment. The shortage of liquidity in the financial sector is prevalent in Nepal, and the business operations and economic activities of SMEs have been hampered by the COVID-19 pandemic. The proposed facility will assist the Bank to further extend capital to the SME segment and contribute to improving liquidity in the financial sector and support the fast recovery of SMEs impacted by the COVID-19 pandemic, including the underserved rural SMEs.GIBL is the largest bank in Nepal in terms of total assets and has grown every year in size and profitability. The Bank has a large stable deposit base, low cost to income ratio, high retail assets, good asset quality and decent profitability. The Bank has an experienced senior management team with a strong vision to grow the Banks operations profitably while maintaining high levels of corporate governance.For the year ended 16 July 2023, the Bank reported total assets of US$4,049 million, loan book of US$2,845 million, net worth of US$451 million and deposits of US$3,279 million. The Bank has robust asset quality (with a gross non-performing assets ratio of 3.08% and provisioning coverage ratio of 116.27%) and healthy profitability with return on total assets of 1.38% and return on equity of 12.36%. GIBL is rated “A” by ICRA.