International Finance Corporation

Stakeholder Effects: (i) Increased access to finance for SMEs, including women owned SMEs: The project is expected to contribute positively towards access to finance for SMEs in Nepal, which identify access to finance as a major constraint. In addition to the growth in the overall SME portfolio, Siddhartha Bank will pursue a more inclusive strategy by increasing its outreach beyond the urban areas and cater to SMEs in rural areas with due focus on women owned SMEs. SMEs play a central role in the creation of employment in emerging markets. By improving access to finance for SMEs, the investment with Siddhartha Bank is expected to create more jobs in the economy. (ii) Increased access to climate finance: The Project also will contribute to climate mitigation efforts in Nepal by increasing access to climate finance for clean transportation, climate smart agriculture, and green buildings. IFC anticipates that the Project will build SBL's capacity to identify and evaluate green lending opportunities and increase access to green financing in Nepal over the next three years.

Project level outcomes Stakeholder effects: Increased access to finance for SMEs: SMEs in Nepal suffer from an estimated financing gaps of US$2.9 billion, as SMEs face greater credit constraints especially during periods of tight liquidity. The Project will increase access to finance for underserved and rural SMEs to meet their requirements for working capital and business expansion, and provide them with greater financing certainty to allow them to grow their businesses. Market creation outcomes Inclusiveness: The Project will demonstrate to other banks the viability of SME centric business model (as most of the 27 commercial banks have historically focused on the corporate segment) with a particular focus on rural SMEs. This is expected to encourage other banks to adopt the business model and expand their outreach to rural SMEs. The Project's catalytic effects will be augmented by IFC's systematic engagement in Nepal alongside other banks to reach the underserved rural SMEs.

IFC proposes an equity investment of up to US$10 million in Dolma Impact Fund II (Fund II or Fund), subject to IFCs aggregate commitment being not more than 20% of the Fund size, where US$5 million shall be from IFCs own-account and remaining US$5 million, which shall be subordinated to IFC in a first loss structure, shall be from the Blended Finance Facility (BFF) of the IDA18 IFC-MIGA Private Sector Window (IDA PSW), created by the Word Bank Group to catalyze private sector investment in IDA countries, with a focus on fragile and conflict-affected states. The Fund is looking to raise US$75 million in investments across various sectors in Nepal. The investment is being processed under the SME-ventures delegated authority framework.

Stakeholder Effects: IFC anticipates the project will provide up to US$25 million in long-term financing for SME. Expected impact includes increase in accessibility of financing for NMB's SME clients, which will ultimately facilitate job creation and income generation in Nepal. Market Impact: Increase competitiveness of SME financing: The high-risk structure for SME lending, absence of appropriate credit methodologies, and lack of product differentiation restricts expansion and innovation in SME financing. IFC's focused lending towards SMEs will demonstrate sustainability of lending to this segment and support increase in overall banking credit to the SME sector.

0 0 0 0 0 0 0 0 0.0000 The project is a credit line of US$ 20 million to be extended to Global IME Bank Ltd. (the Bank or GIME). The project will provide funding to the Bank to support the entities primarily, but not limited to Small and Medium Enterprise s (SME s ) engaged in tourism, agriculture, micro finance and small & cottage industry sectors, as defined in the priority sector guidelines by NRB. In terms of size and capitalization, the bank ranks 5th, among private sector commercial banks in Nepal. The total asset base and loan portfolio of the Bank were NPR124 billion ( US$1,1 51 million equivalent) and NPR89.7 billion ( US$8 33 million equivalent) , respectively, as of April 13, 2018.

Summary Of Project Information (SPI) Project Name Nepal-Jomsom Mountain Resort Region Asia Sector Project No008464 Projected Board DateNovember 1, 1997 Company NameJomsom Mountain Resort Technical Partner and/or Major Shareholders Mr. R. P. Pradhan and his family will own 100% of the hotels equity. Project Cost Including proposed IFC investment Project cost is $7 million and proposed IFC investment is $2.45 million A loan and $1.05 million B loan - Location of project and Description of site Jomsom, Mustang District. The hotel will be located in Jomsom in West Nepal. The site is a relatively flat piece of land with no vegetation. - Description of Company and Purpose of Project The sole purpose of the company would be to build and operate the hotel in Jomsom, Nepal. - Environmental Category and Issues This is an environmental review category B project. Environmental, health and safety issues include liquid effluent treatment and disposal, solid waste, water supply, power supply, site selection and land use, fire safety, employee training, and emergency response. The land is barren and is not being used for any purpose. It is not suitable for growing and there is no vegetation on the land. The mitigating measures include a waste water treatment plant, an incinerator for solid waste disposal, water filtration plant for drinking water, wind mill for environmentally friendly power generation. In order to minimize the environmental impact, the Sponsors are planning to build the hotel with no more than two floors thus eliminating the need for sprinkler system. The employees will be provided with training to respond to fire and other emergencies. Likewise, there will be no air conditioning, which will eliminate the issue of CFC. The is August 15, 1997 from the Public Information Center. Date SPI sent to PIC July 25, 1997 For Additional Information contact: Corporate Relations Unit Telephone: (202) 473-7711 Fax: (202) 974-4384 Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Summary Of Project Information (SPI) Project Name Nepal-Upper Bhote Koshi Hydroelectric Power Project Region Asia Sector Power Project No007365 Projected Board DateDecember 8, 1997 Company NameBhote Koshi Power Company Technical Partner and/or Major Shareholders Panda Energy International, Inc. Harza Engineering Company International L.P. Himal International Power Corporation Project Cost Including proposed IFC investment Up to US$3 Million exposure to undertake US$ interest rate swaps. Location of project and Description of site Kathmandu (Nepal) Description of Company and Purpose of Project The objective of this project is to allow Bhote Koshi Power Company (the Company) to hedge its interest rate risk. The Company has requested that IFC establish a Risk Management Facility in order for it to enter into interest rate swaps on its FMO, Dresdner and Bayerische Vereinsbank loans under the IFC B loan. The interest rate swaps will effectively convert these loans from variable rate US Dollar (US$)to fixed rate US$. These interest rate swap transactions will be priced on the basis of standard IFC pricing guidelines for client risk management transactions. IFCs total exposure under these swap transactions is estimated at approximately US$3.0 million. This project will further support the developmental initiatives cited in IFCs investment in the Project. Interest rate risk management would improve the stability of the Companys future cashflows and enhance its economic viability. Environmental Category and Issues The proposed transaction is of financial nature only, and accordingly is classified as a Category C Project according to IFCs environmental review guidelines and procedures. No further environmental review is required. Date SPI sent to PIC Revised: April 8, 1996 December 4, 1997 For Additional Information contact: Corporate Relations Unit - telephone: (202) 473-7711 facsimile: (202) 974-4384 Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Financial Sector Deepening: The Project will enable BoK to access foreign currency funding and compete on a level-playing field with foreign banks that have the benefit of parent funding. The IFC funding will also encourage other international banks / FIs to lend to local banks in Nepal eventually increasing the access to market funding. Supporting Trade: Support to SMEs (via trade financing) is critical as trade in Nepal contributes 41% to the GDP. The project will have a positive impact on economic activity in Nepal

IFC proposes to invest up to 10% in Rural Microfinance Development centre Ltd (RMDC), an apex microfinance wholesale lending institution in Nepal with over 79 microfinance institutions (MFIs) as its clients. RMDC was established in 1998 with the support of the Nepal Rastra Bank (NRB), the central bank of Nepal, and the Asian Development Bank (ADB), with majority stake held by NRB (26%) and 13 commercial banks (67%). RMDC has been playing a promotional and developmental role in the microfinance sector since its inception. RMDC has a primary objective of increasing the number of retail MFIs by identifying potential institutions across the country and assisting them to become quality MFIs by providing intensive training and technical support, along with loan funds for on-lending to individual microfinance borrowers.

IFC Ventures focuses on high risk IDA countries where few other sources of financing for small business operate. The program will directly build the local capacity of financial intermediaries to manage sustainable investment funds for small businesses, providing both risk capital and critical advisory assistance.

Nirdhan Utthan Bank Ltd. (NUBL or Nirdhan), a microfinance bank, commenced operations in 1999 by taking over the microfinance activities of Nirdhan NGO. NUBL is one of Nepals largest Micro Finance Development Banks (MFDB) with an outreach of nearly 110,000 clients and outstanding loans of approximately $13 million. It offers a wide range of loan products, deposit products, micro insurance and remittance. IFC proposes to invest up to $0.40 million equity for an up to 15% stake in Nirdhan Utthan Bank Ltd to provide a stable funding source in these turbulent times. An advisory services package through SEDF to strengthen institutional capacity is to be implemented in tandem with the proposed equity.

- Contribution to sustainable development: The resurgence of the tourism industry in Nepal is being hampered by the unavailability of airline services to the major regional hubs. Through its support to boosting tourism, air transport also contributes though indirectly but to a great extent to reduce poverty by generating economic growth, providing employment opportunities (tourism accounts for more than 300,000 jobs in Nepal), earn foreign currency reserves and increasing tax collection. - Safe, reliable and efficient transportation services to underdeveloped areas: Being a mainly mountainous country, air travel is important to economic development as well as emergency and essential services to isolated regions of the country with either none or limited road access. BAPL provides essential air transportation services in Nepal, where traveling by road or rail transportation is inconvenient, time consuming and at times impractical in light of the quality of the countrys land-based transport infrastructure and the distances between the countrys urban centers.. - Investment Enabler: Air transport is an enabler of investment both into and out of countries and regions: viable air transport links are one of the key considerations that influence where international companies choose to invest. Improved air transport links by way of improved connectivity between cities, expand the market in which companies operate. As a result, companies are better able to exploit economies of scale thereby reducing costs, and to specialize in areas of comparative advantage. By opening of markets, air services expose companies to stiffer competition, encouraging them to become more efficient.

International Leasing & Finance Company Limited is a non-banking finance company operating in Nepal since 1996. The company is a joint venture between KDB Capital (a subsidiary of Korean Development Bank) and Nepalese sponsors led by the National Life & General Insurance Company. IFC''s proposed investment would meet the following objectives: 1) IFCs proposed investment will help the small business community to gain easier access to longer term financing. 2) An investment in the Nepalese leasing sector will strongly support IFC''s broader efforts to develop the financial sector. 3) It will strengthen ILFC''s capital base and enable the company become a model institution as a diversified financial services company.

Project outcomes Stakeholder effects Increased access to finance for MSMEs: The MSME finance gap in Nepal is estimated at US$6 billion, which represents approximately 14% of the GDP with roughly 55% of MSMEs being constrained by lack of access to finance. Access to finance for MSMEs is constrained by lack of information, high reliance by banks on collateral, bank business models that are not suited to meeting the needs of MSMEs, with only a few banks having dedicated MSME financing units. IFC anticipates that the Project will contribute to increased access to finance for MSMEs, including women-owned businesses and climate MSMEs in Nepal and help narrow the MSME finance gap in the country. Contribution to market creation - Competitiveness: IFC expects that the Project will promote the competitiveness of the MSME finance market in Nepal. IFC anticipates through systematic interventions focused on provision of a risk mitigation tool in Nepal will demonstrate the effectiveness of RSFs in mitigating the credit risk of MSMEs and build a business case for MSME lending spurring competitiveness in the MSME financing market.

Project outcomes Stakeholder effects Increased access to finance for MSMEs: The MSME finance gap in Nepal is estimated at US$6 billion, which represents approximately 14% of the GDP with roughly 55% of MSMEs being constrained by lack of access to finance. Access to finance for MSMEs is constrained by lack of information, high reliance by banks on collateral, bank business models that are not suited to meeting the needs of MSMEs, with only a few banks having dedicated MSME financing units. IFC anticipates that the Project will contribute to increased access to finance for MSMEs, including women-owned businesses and climate MSMEs in Nepal and help narrow the MSME finance gap in the country. Contribution to market creation - Competitiveness: IFC expects that the Project will promote the competitiveness of the MSME finance market in Nepal. IFC anticipates through systematic interventions focused on provision of a risk mitigation tool in Nepal will demonstrate the effectiveness of RSFs in mitigating the credit risk of MSMEs and build a business case for MSME lending spurring competitiveness in the MSME financing market.

Stakeholder Effect: (i) Increased access to finance for MSMEs: Access to finance remains a major constraint for MSMEs in Nepal. The Project will increase access to finance for MSMEs in Nepal by supporting LSL in expanding its MSME loan portfolio. (ii) Increased access to climate finance: The Project will also contribute to climate mitigation efforts in Nepal by increasing access to climate finance, with a focus on renewable energy (excluding hydropower projects) and electric vehicles. Market-level Outcome: IFC anticipates that this Project will enhance competitiveness within Nepals climate-finance market by reinforcing the importance of climate finance as a distinct asset class in Nepal, sending a strong signal to the market and encouraging replication by other financial and non-financial institutions.

Increased access to climate finance, including to MSMEs: While Nepals contribution to GHG emissions remains low, it is amongst the most vulnerable countries to climate change. Nepal ranks the 10th most affected country in the world according to the Climate Risk Index 2021. The country faces high risks of flooding and landslides, triggered by rapid snow and ice melt in the mountains as well as by torrential rainfall, especially during the monsoon season. The proposed investment will support NMB in continuing to increase financing for climate related projects including climate finance to SMEs, and broaden their scope of climate-related sectors. Competitiveness: IFC will promote greater competitiveness in the market for climate financing by supporting the issuance of a new instrument, green bonds, to raise financing for climate-linked projects. The market for climate financing remains dominated by government financing, and concessional loans and grants from multilateral agencies and bilateral donors, whereas financing from private sector remains very limited. In this context, IFC will support a systemically relevant financial institution in the country to issue the countrys first green bond. The bond will be issued in line with Green Bond Principles by International Capital Markets Association (ICMA) and international standards of green lending, thus reinforcing harmonized green practices in the market via demonstration and market enabling channels. IFCs investment in the first green bond will send a strong signal to the market, motivating other financial and non-financial institutions to also issue green bonds, and contribute to the development of the green finance market.

The project benefits from inclusion adjustment. The most significant expected project-level outcome is to increase access to quality broadband Internet and data hosting services for households and businesses. Beyond the project outcomes, IFC anticipates that its financing will support the creation of a competitive market for data hosting services via demonstration and replication channels. IFC anticipates that the Project Outcomes are Very Strong, derived from increased access to quality fixed broadband connectivity for households, by connecting households with high-speed Internet, a substantial share of which are located in underserved areas and were previously unconnected. Further, the Project is also expected to increase access to data hosting services for businesses, by rolling out core and edge data center facilities in the Country. These outcomes have the potential to result in higher availability of digital services for individuals and thereby support enhanced productivity growth for businesses. this investment is expected to support the creation of a competitive market for data hosting services in Nepal by inducing market entry through demonstration and replication of a nascent business model and technological innovation. As part of this investment, the Company is introducing the wholesale data center business model outside metropolitan areas to support rural connectivity and serve both hyperscalers and local market with data hosting facilities. A successful expansion is expected to demonstrate the commercial viability of this business model at scale in this nascent market, thereby supporting the entry of independent DC providers or new hyperscalers.

Stakeholder Effects: (i) Increased access to finance for SMEs, including women owned SMEs: The project is expected to contribute positively towards access to finance for SMEs in Nepal, which identify access to finance as a major constraint. In addition to the growth in the overall SME portfolio, Global IME Bank intends to pursue a more inclusive strategy by increasing its outreach beyond the urban areas and cater to SMEs in rural areas with due focus on women owned SMEs. SMEs play a central role in the creation of employment in emerging markets. By improving access to finance for SMEs, the investment with Global IME Bank is expected to create more jobs in the economy. (ii) Increased access to finance for women-owned SMEs: The Project also aims to address access to finance constraints by women-owned SMEs in Nepal. (iii) Increased access to climate finance: The Project also will contribute to climate mitigation efforts in Nepal by increasing access to climate finance for clean transportation, climate smart agriculture, energy efficiency, biomass, biogas, solar projects and equipment. IFC anticipates that the Project will build Global IME Bank's capacity to identify and evaluate green lending opportunities and increase access to green financing in Nepal over the next three years.

Good Karma Group of Companies Private limited (Holding Company, Parent Company) has undertaken the construction and development of a greenfield apartment complex in Kathmandu Nepal totalling 186 apartments, of which 56 serviced apartments are proposed to be operated by Marriott International (the Operator, Marriott) and the balance 130 apartments will be sold to the general public. The 56 serviced apartments (the Project) will be owned by the sponsors under a 100% subsidiary company of the Parent Company named Good Karma Hospitality Pvt. Ltd. (Company).

0 0 0 0 0 0 0 0 0.0000 The proposed project consists of a senior loan of up to US$15 million to be extended to NMB Bank (the Bank) . The project will provide funding to the Bank to support the working capital needs of its clients, especially Small and Medium Enterprise (SME) clients in key sectors within Nepals economy.

The Project is expected to increase access to working capital financing for SMEs in Nepal, which suffer from a significant gap between the current supply of finance and their demand for credit. Working capital is necessary for SMEs to finance their daily business operations, source supplies and pay employees. SME growth ultimately facilitates business growth, job creation and income generation, especially in key productive sectors of the Nepalese economy. The financing will also support key industries, as the ultimate recipients of funds would include buyers of raw materials, processors and manufacturers that support growth.

The proposed project involves establishing an unfunded short term trade finance facility with Global IME Bank Limited (GIBL or the Bank) in Nepal under the Global Trade Finance Program (GTFP or Program) of IFC (the Project) with a carve out allocated towards climate smart trade finance. GTFP is IFCs response to shortage of trade finance limits in developing economies such as Nepal and the project will support GIBL in addressing the demand and supply gap for its growing trade business.

The Project is expected to have positive impacts at both a sector and project level: (i) Demonstration effect: First, UT1's PDA and PPA are expected to become model project documents for FDI in Nepal's hydropower sector. Second, efforts on managing cumulative impacts, impact on aquatic habitat and benefit sharing through local share ownership are expected to set a sustainable benchmark for future hydropower development. (ii) Increased electricity generation: The Project is expected to supply baseload power for domestic consumption of 1,446 GWh per year to reach about 9 million people and reduce dependence on power imports. A large share (nearly 40%) of UT1's output is expected to be in the dry season, which includes the peak winter demand months. (iii) Climate change mitigation and adaptation: The Project includes substantial capital expenditures for design elements that improve the Project's resilience to potential climate change impacts. (iv) Benefits to local economy and livelihood: The Project's benefits include construction-phase employment of 1,100 workers, a local skills training program, 0.5% of Project costs for community development, up to 10% of Company shares offered to Project Affected People, and 20 kWh of monthly free rural power given to nearby/eligible households.

Nepal Hospitality Group Pvt Ltd (NHGPL, the Company or the Borrower), was incorporated in 2012 as a private limited company under MS group (the Group). The MS group, a reputed conglomerate in Nepal , has diversified presence in textile, steel, consumer goods, real estate and other sectors. The Group is currently venturing into hospitality industry by developing a midscale hotel in Kathmandu, under the Fairfield brand of Marriot Group. The proposed hotel is a greenfield, Three star facility, hotel property (the Project), to be operated by Marriott International (the Operator). It will have a total of 110 rooms with 10 floors, 2 basements, and will include other amenities such as one restaurant, fitness centre, two meeting rooms, bar and a shop.

(i)Food security: Since feed represents over eighty per cent (80%) of live broiler production costs, improvement in feed quality and feed mill production efficiencies, as envisaged by the project would help in reducing cost of production of broiler making it more affordable to the end-consumer through achieving economies of scale. (ii)Supply chain efficiency and income generation for small growers:On successful completion, the project is likely to help increase the efficiency of the food supply chain leading to improved productivity at the farm-gate level thereby translating into higher income for the growers (iii)Employment creation:The proposed project once completed is expected to help create both direct and indirect employment opportunity for people both at the plant and farm level