IFC extends first ever green GTFP line to Global IME Bank in Nepal
KATHMANDU, Sept 29: IFC, a member of the World Bank Group, is extending an unfunded short-term facility under the Global Trade Finance Program (GTFP) to Global IME Bank, one of the largest commercial banks of Nepal, with a carve out allocated towards climate smart trade finance. This is the first IFC green trade finance line globally.
Chief Executive Officer of Global IME Bank Ratna Raj Bajracharya and Joon Young Park, Regional Manager Financial Institutions Group South Asia signed on the document on behalf of their respective organizations.
GTFP is IFC’s response to shortage of trade finance limits in developing economies such as Nepal and the project will support Global IME Bank in addressing the demand and supply gap for its growing trade business. Inclusion of the “Green” component in this GTFP is a strong value proposition for the Bank to do climate trade business responding to the need of the hour.
The GTFP line is expected to improve the access to Trade Finance for GIBL and its trade finance customers. IFC anticipates that GTFP improves overall market integration by maintaining and expanding trade finance, financial linkages and trade across multiple markets through strengthening bilateral correspondent banking connections and serving as an enabling platform to make new connections between local and international banks and their customers.
Speaking on the occasion, Chairman of Global IME Bank Chandra Prasad Dhakal said that the agreement would be a roadmap for climate smart trade financing in Nepal.
This is the second partnership between IFC and Global IME. In 2019, IFC invested $20 million in the bank to support SMEs.