It gives me great honor and pride that Nepal Infrastructure Bank Ltd., (NIFRA) is now ready for business. The entire team of NIFRA is focused to work efficiently to meet the expectations of all its stakeholders. We embark together on the journey of being a catalyst for the infrastructure development of Nepal.
Infrastructure is prerequisite of sustainable economic growth of a country. Lately, participation of private sectors into the infrastructure development is largely being encouraged in the Global arena. The Government of Nepal (GoN) had also envisioned the requirement of an infrastructure development bank including private sector participation since the Budget Speech of FY 2072/73. On this backdrop, Nepal Infrastructure Bank Ltd. (NIFRA) has been established as a Public Private Partnership (PPP) venture wherein GoN has 10% shareholding and the rest of the ownership is of Banking and Financial Institutions (BFIs), Insurance Companies and other private businesses and individuals.
NIFRA is here for providing end to end solutions in the modern, clean and efficient infrastructure projects in the country. Our business scope revolves mainly around raising domestic and international resources of various tenors and forms, financing long term infrastructure projects, partnering with different stakeholders of infrastructure projects including advisory services, directly or through SPVs.
We realize that easy access to Global financial market is most essential for arranging adequate resources to fulfill the financing gap for infrastructure development in our country; the same will not happen overnight. We shall work in partnership with international stakeholders to raise affordable global resources through financial structures suitable for opportunities in Nepal. As Nepal readies itself by developing its financial infrastructure such as Country Risk Rating, a robust/ market based currency hedging mechanism, we shall offer products to minimize interest rate and currency risk to our customers by working simultaneously for the capacity building in collaboration with knowledge partners (Local & International).
We believe, a balance between adequate financial return motivating private developers and justified long term economic return as desired by the nation is pivotal to run an infrastructure project successfully. Our team is equipped with the capability to properly assess the financial as well as economic return of the respective infrastructure project and can also provide input for working out the required concessional arrangement if necessary, through various mechanisms like viability gap funding, annuity financing, etc.
While doing business, a robust risk management culture is at the heart of everything we do. In line with our risk culture embedded in our day to day business activities, understanding, evaluating, accepting and monitoring manageable risks are at the center of our business processes and decision making at every level, as we understand such a risk culture shall be of paramount importance for growth and sustainability of an organization like ours. Our robust risk culture helps us always to ensure the check and balance to be maintained from technical, financial, social and other environmental risks perspectives.
Our Board of Directors, directly and through various Board Level Committees like Audit Committee, Risk Management Committee and Anti Money Laundering Committee, maintains an active oversight in formulating risk policies and in monitoring their implementation for effective management of various risks of the Bank for optimal risk return trade-off. Approved policies, such as Risk Management Policy, Internal Capital Adequacy Assessment Process (ICAAP) Policy, Credit Policy Guideline, Corporate Governance Policy, Asset Liability Management Policy, AML/ CFT Policy, Audit Policy and Controlled delegation of Signing Authority, Operational Guidelines, to name a few, have laid down a sound framework for effective risk management and corporate governance in the Bank.
Lastly, being the first Bank incorporated under the category of 'National Level Infrastructure Development Bank' as classified by Nepal Rastra Bank, NIFRA has already set a milestone. Now, we are all set to play a nodal and pivotal role in bringing all the stakeholders, like GoN, Private Sector Investors, Multilateral/ Bilateral Development Agencies, Local Banks and Fund Managers, Foreign Banks and Financiers, Technical Consultants together to make a significant difference in the country’s infrastructure.