Siddhartha Bank
Introduction
Siddhartha Bank is helping to increase access to capital for micro, small and medium-sized enterprises, businesses in the food sector, as well as contributing to the development of hydropower in Nepal. The bank also has tailored products for women entrepreneurs and currently 41 per cent of its customers are women.
The investment in Siddharta Bank is Swedfund's first direct investment in Nepal. The loan will complement the bank's financing and capital structure, creating conditions for growth in prioritised segments, such as the agriculture and food sector and energy production.
Swedfund's loan is also expected to contribute to the bank's financing of micro and small/medium enterprises (MSMEs) and more specifically targeting MSMEs owned and operated by women.
Read more in our press release: Swedfund and Finnfund invest in Siddhartha Bank to strengthen Nepal’s financial inclusion and financing to renewable energy
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in Focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Financial Inclusion
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively.
Value creation
Impact
Swedfund’s investment contributes to providing micro, small and medium-sized enterprises access to long-term finance, contributing to economic growth and the creation of more jobs or other income-generating opportunities locally. Furthermore, the investment contributes to local tax revenues and to the economic empowerment of women by providing them with access to finance.
Additionality
Swedfund’s investment is financially additional as it is made in a challenging, high-risk context where access to capital is limited, the business environment is challenging, and poverty is high.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is Medium Risk (FI-B) based on the FI’s investment strategy, exposure to E&S/impact risks identified in the portfolio, including customer protection principles. Inherent contextual risks related to climate change and human rights in Nepal.
ESG mitigation measures
Development and implementation of an environmental and social management system (ESMS) with the capacity of managing and mitigating environmental and social risks linked to the sector. Swedfund will also work on issues related to occupational safety and health and good practices for customer protection.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-4 are applicable to the financial institution (FI) and its subsidiaries. IFC PS 1-8 may be applicable for the clients of the institution.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.