Kathmandu. British International Investment (BII) and Laxmi Sunrise Bank Limited (LSL) have signed a loan facility agreement of $25 million. The objective of this collaboration is to expand financial access to Nepal’s Micro, Small and Medium Enterprises (MSMEs), and especially to encourage women entrepreneurs.
The MSME sector contributes about 22 percent to Nepal’s Gross Domestic Product (GDP) and provides employment to nearly 2 million people. However, according to the statistics of the World Bank and Nepal Rastra Bank, due to the limited access of financial institutions and the disparity between the needs of entrepreneurs and the banking process, only 16 percent of MSMEs have been able to get credit facilities through the formal financial system.
Through this investment, Laxmi Sunrise Bank will expand long-term credit flow to the MSME sector, under which 30 percent of the total facility will be targeted for women-led businesses. The collaboration will contribute to job creation, entrepreneurship and development of inclusive private sector by providing capital to businesses that lack financial access.
The bank has been recognized under the ‘2X Challenge’, a global initiative to promote women’s economic empowerment. BII is also a founding member of this initiative. The accreditation is based on the bank’s progress in the area of good governance, leadership, employment and gender inclusion across the loan portfolio. In addition, BII’s technical assistance program ‘Invest for Impact Nepal (IIN)’ has helped to enable the bank to expand its services to women-owned and led businesses.
Along with this, Laxmi Sunrise Bank has also committed to further strengthen its Environmental and Social Management System (ESMS). It reinforces the bank’s sustainability strategy and responsible banking practices, supporting environmental and social risk management and sustainable financial initiatives.
Seema Malhotra, the UK’s Minister for Indo-Pacific Affairs and Equality, said TAG_CLOSE_strong_41, }, “The UK has long been a reliable partner of Nepal.TAG_OPEN_strong_42 The UK has been continuously supporting Nepal’s economy to make it stronger, more inclusive and prosperous. We are excited to partner with Laxmi Sunrise Bank to provide financial access especially to women-led SMEs. This partnership exemplifies our shared commitment to expanding economic opportunities, encouraging women entrepreneurship, and advancing sustainable economic growth. ”
BII Ka Asia Region{ Major and Prabandha Director Srini{{TAG_CLOSE_ strong_32}} Nagarajan TAG_CLOSE_strong_30″BII has been focusing on the areas with the greatest impact, and Nepal is an important part of our Frontier Markets strategy. Under this strategy, at least 25 percent of our new investments will be directed to the least developed countries as defined by the United Nations. In partnership with Laxmi Sunrise Bank, we are supporting the leading financial institutions in Nepal who have the capacity and access to support the underserved businesses in Nepal.” Such access to finance is essential for the sustainable development of the private sector. ”
Sumed Bhattarai, Officiating CEO of Laxmi Sunrise Bank stated, “This partnership with British International is an important milestone in our journey towards inclusive and sustainable banking. While MSMEs are the backbone of Nepal’s economy, women-led businesses, in particular, are still far from formal financial access. Through this $25 million facility, we will be able to bridge that gap. The recognition under the 2X Challenge also reaffirms our commitment to gender-inclusive financial services. We are excited to partner with BII to create long-term economic opportunities for entrepreneurs and communities across the country.” ”
Lakshmi Sunrise Banks
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Laxmi Sunrise Bank Limited is a class ‘A’ commercial bank licensed by Nepal Rastra Bank. The bank has been providing inclusive financial services throughout the country with priority on sustainable economic development and environmental responsibility. With a network of 254 branches, 327 ATMs and a strong digital banking network, the bank is providing its services from urban areas to underserved communities. The bank has been continuously supporting enterprises, businesses and individual customers by providing loans to the development of the private sector of Nepal.
British International} Investment{
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British International Investment is the UK government’s development finance institution and influential investor. It aims to invest in developing countries to help improve lives, reduce poverty and tackle the climate crisis.
From 2026 to 2031, at least 40 percent of the BII’s total new investment commitments will focus on climate finance. BII is also a founding member of the ‘2X Challenge’, which has mobilized more than $33.6 billion to date for the economic empowerment of women. The company has investments in more than 1,600 businesses in 66 countries and has a net worth of £9.87 billion.
