LS Senior Loan

pending

The proposed investment is a 3-year, US dollar (US$)-denominated, amortizing senior loan of up to US$20 million to Laxmi Sunrise Bank Limited (LSL or the Bank), the sixth-largest private commercial bank in Nepal. Approximately 50% of the loan proceeds will be allocated for on-lending to micro, small, and medium-sized enterprises (MSMEs) in Nepal, including underserved rural MSMEs, while at least 50% (US$10 million) will be earmarked for climate financing (the Project). The Project aims to support the recovery of small businesses that have been disproportionately affected by the COVID-19 pandemic and subsequent economic slowdown through its MSME-focused use of proceeds. Additionally, the Project’s green financing component will help expand the Bank’s portfolio of eligible climate finance assets, with a focus on renewable energy (beyond hydropower projects) and electric vehicles, contributing to Nepal’s sustainable development goals.