FMO ups stake in NMBDutch development bank FMO has raised its stake in Nepal’s NMB Bank to 20 percent from 3 percent.
Dutch development bank FMO has raised its stake in Nepal’s NMB Bank to 20 percent from 3 percent.
In a statement on Wednesday, the banks said FMO’s investment in NMB will contribute to the strengthening of Nepal’s financial sector.
FMO’s first investment in NMB had come after the later merged with Clean Energy Development Bank—in which FMO has its stake—along with Bhrikutee Development Bank, Pathibara Bikas Bank and Prudential Finance Company in October 2015. After the merger, FMO’s stake in the merged unit had diluted from 14 to 3 percent.
“The merger was also strongly driven and supported by FMO through intensive and persuasive guidance by its nominee board directors and shareholders’ representatives with the intention to create a bigger platform for strengthening the financial support for the renewable energy sector in Nepal,” read the statement.
“FMO is proud to be a pioneer FDI investor to actively support the financial sector in Nepal, thereby enabling much needed investments in the renewable energy sector decreasing CO2 emissions, while helping this beautiful country grows its economy,” said Linda Broekhuizen, Chief Investment Officer of FMO, at a signing ceremony here on Wednesday.
On the occasion, NRB Bank Chairman Pawan Kumar Golyan FMO’s move to increase its stake in NMB is an important milestone for the Nepali bank.