British International Investment (BII), the UK’s development finance institution and impact investor, has signed a $25 million credit facility agreement with Laxmi Sunrise Bank Limited. The partnership will help expand access to finance for micro, small and medium-sized enterprises (MSMEs) in Nepal, with a focus on women-led businesses.
Small businesses are central to Nepal’s economy as MSMEs contribute 22 per cent of the country’s GDP and employ nearly 2 million people. Yet only 16 per cent have access to finance through formal channels, according to World Bank and Nepal Rastra Bank data.
Through this investment, Laxmi Sunrise Bank will increase lending to MSMEs with 30 per cent of the facility expected to support women-led businesses. By providing long-term capital to underserved businesses, the partnership is expected to support jobs, entrepreneurship and the growth of a more inclusive private sector across Nepal.
The bank has qualified for the 2X Challenge, a global initiative to advance women’s economic empowerment, of which BII is a founding member. The qualification recognises the bank’s commitment to gender-smart practices, including progress across governance, leadership, employment and portfolio inclusion.
BII has also supported Laxmi Sunrise Bank through its technical assistance programme, Invest for Impact Nepal, which has helped the bank strengthen its approach for supporting women-owned and women-led businesses.
Seema Malhotra, UK’s Minister for the Indo-Pacific and Minister for Equalities, said: “The UK has been a long-term partner to Nepal, backing its journey towards a more resilient, inclusive and prosperous economy. It is encouraging to see British International Investment supporting Laxmi Sunrise Bank to expand finance for MSMEs, particularly women-owned businesses. This partnership reflects our shared ambition to unlock economic opportunity, back women entrepreneurs and support sustainable growth.”
Srini Nagarajan, Managing Director and Head of Asia, BII, commented: “At British International Investment, we focus where we can deliver the greatest impact, and Nepal is an important part of our frontier markets approach. Through this, at least 25 per cent of our new investments will be in UN-defined least developed countries. By partnering with Laxmi Sunrise Bank, we are backing a leading financial institution with the reach and ambition to support underserved businesses across Nepal, where getting access to financing is challenging but critical for the private sector to grow.”
Sumed Bhattarai, Officiating Chief Executive Officer, Laxmi Sunrise Bank, added: “This partnership with British International Investment marks a significant milestone in our journey toward more inclusive and sustainable banking. MSMEs are the backbone of Nepal’s economy, yet far too many – particularly women-led businesses – remain underserved by formal financial institutions. This $25 million facility empowers us to bridge that gap meaningfully. Our qualification for the 2X Challenge further reflects our commitment to gender-smart finance, and we look forward to working alongside BII to create lasting economic opportunities for entrepreneurs and communities across Nepal.”
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About British International Investment
British International Investment is the UK’s development finance institution and impact investor. The organization invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.
Between 2026-2031, at least 40 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,600 businesses across 66 countries and total net assets of £9.87 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn, Bluesky and X.
About Laxmi Sunrise Bank
Laxmi Sunrise Bank Limited is an ‘A’ Class commercial bank of Nepal, committed to driving sustainable economic growth and environmental stewardship across the country. With a network of 254 branches and 327 ATMs, complemented by a strong digital presence, the Bank delivers accessible and inclusive financial services to a diverse customer base spanning urban centres and underserved communities alike. As one of Nepal’s leading financial institutions, Laxmi Sunrise Bank plays an active role in channelling credit to individuals, businesses, and enterprises that underpin Nepal’s private sector development.
