SLGP LSL RSF

pending

The proposed project consists of an unfunded risk sharing facility (RSF) on a 50:50 basis between IFC and Laxmi Sunrise Bank Limited (Bank) in Nepal to support up to US$20 million Nepalese rupee (NPR) equivalent of eligible MSME loans to be originated by the Bank (the Project). IFC’s maximum risk amount will be up to US$10 million NPR equivalent. The Project provides the Bank with a credit risk mitigation instrument, which is unavailable in the market, to help increase access to finance for MSMEs, including women-owned MSMEs (WMSMEs) and climate MSMEs. It is the first time that IFC is doing an RSF in Nepal.Subject to eligibility confirmation, the Project would be processed under IFC’s Small Loan Guarantee Program (SLGP, the Program), a programmatic approach to derisk and scale up financing for SMEs in Nepal and other eligible countries. SLGP is supported by a pooled first-loss guarantee (PFLG) provided by the IDA-PSW Blended Finance Facility.