The Dutch Fund for Climate and Development (DFCD) origination facility investment committee has approved a project proposal to support Muktinath Bikas Bank Ltd. in developing new financial products to reach rural Nepal cooperatives. While also addressing climate resiliency challenges.
As a result, the SNV intends to sign a EUR 300,000 grant funding agreement with Muktinath Bikas Bank Ltd to support the further development of an investment proposal and a technical assistance package.
The technical assistance package with SNV will support the company with the development of new financial products. This includes an assessment of the needs of cooperative members and the development of suitable financial products the bank will offer to rural coops. It also provides support services to the cooperatives, through Muktinath Krishi, with key activities being market linkage support, financial literacy training, supply of climate-resilient agricultural inputs, improved resiliency through capacity building, and both ESG and GESI assessments.
This project is expected to achieve both a Rio-Marker one and two. The Rio-Marker one is achieved through Banking and Financial Services, providing credit lines for climate adaptation. The Rio-Marker two Rural Development is achieved by adopting sustainable agriculture for adaptation to climate change.
The outputs of the project include:
- The development of suitable bulk lending products for rural cooperatives.
- Support services, which meet the needs of rural coops to improve climate resiliency and sustainably scale up agricultural practices.
- Improved livelihoods and resiliency to climate change for cooperative members and value chain partners.
The impact of the originating stage includes:
- 17,500 people positively impacted, of which 50% are expected to be women.
- Mobilising $10 million of investment into Nepal, with at least 3 million addressing agriculture and rural livelihoods. Investments may also include (MSME) Micro, small and medium enterprises, sustainable activities and the creation of climate resilience in agriculture, forestry and water supply, and protection of ecological systems. In addition to woman-owned businesses and youth entrepreneurs: creating opportunities and promoting gender equality, innovations in inclusive business and access to basic goods and services.
- 2,450 hectares of farmland under sustainable management.
About the DFCD
The Dutch Fund for Climate and Development is a 160 million Euro fund from The Netherlands Ministry of Foreign Affairs to improve the resiliency of the most vulnerable landscapes, ecosystems, and communities through climate change adaptation. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the programme website.
SNV is a mission-driven global development partner working in more than 20 countries across Africa and Asia. Building on 60 years of experience and grounded in the 2030 Agenda for Sustainable Development, we work on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance. Together with our team of over 1,600 people, our mission is to strengthen capacities and catalyse partnerships that transform the agri-food, energy, and water systems, which enable sustainable and more equitable lives for all.
Muktinath Bikas Bank Ltd, founded in 2007, is a Rural development bank in Nepal. Muktinath’s philosophy is that “People should not come to the Bank; the Bank should go to the door of the people”. The company has 176 branches, 22 ATMs and over 4,500 remittance terminals, with a presence in all seven states of the Nation.
For more information
To read the full disclosure document, please click here. For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:
SNV - Dutch Fund for Climate and Development: Mr Alex Downs, firstname.lastname@example.org