Nepal's central bank has opened licensing applications for investors to set up the country's Infrastructure Development Bank, The Himalayan Times reported Aug. 11, citing bank officials.
Nepal Rastra Bank, which on the same day released the licensing policy document for the mega bank, said the institution will have a paid up capital of 20 billion Nepalese rupees.
According to central bank officials, if foreign investment accounts for 50% of the Infrastructure Development Bank's paid-up capital, 30% of the bank will be floated to the public. If such investment comprises 100% of the capital, 15% will be available to the public with the promoter required to invest between 20% and 85% of its total paid-up capital.
Conversely, if the bank is established entirely by domestic investment, 30% will be floated to the public with the promoter required to invest 51% of its total paid-up capital, the publication noted.
Promoters will also not be able to borrow from financial institutions to invest in the mega bank, which will focus on investing in large infrastructure projects, while nonresident Nepalese can invest via remittance.
As of Aug. 11, US$1 was equivalent to 102.61 Nepalese rupees.