IFC buys RMDC shares at Rs 54m

KATHMANDU, NOV 25: 

International Finance Corporation (IFC) has injected equity capital in Rural Microfinance Development Center (RMDC) to support microfinance in Nepal.

IFC — a member of World Bank Group — has invested in 300,000 unit shares of soon to be public RMDC at premium price of Rs 180 per unit share.

It has invested Rs 54 million ($700,000) as equity capital in the wholesale lending agency to expand the micro credit service in the country. Along with the financing, IFC will also be providing assistance in developing a robust business model to RMDC.

“The project is supposed to aid in poverty reduction, women empowerment and propel economic development,” pointed out IFC’s country manager for Bangladesh, Bhutan and Nepal Kyle Kelhofer, while signing the agreement with RMDC.

Kelhofer and chairman of RMDC Ashoke Rana signed an agreement today on behalf of their respective institutions here today to join hands in fighting against poverty through microfinance. IFC as a development institutions focuses on private sector development for the sustainable growth of the developing countries. At present, existing micro finance institutions are catering to estimated 1.7 million households by providing hassle free micro loans. There are 100 microfinance institutions affiliated to RMDC that comprise 76 per cent of total micro credit market. “IFC’s support will not only strengthen RMDC’s ability to offer finance to microfinance institutions but also give out a positive message regarding the financial sector,” expressed RMDC CEO Shankar Man Singh.