MICROCAPITAL BRIEF: International Finance Corporation Invests $28m in Equity in Bhutan National Bank to Increase Financial Inclusion; Lending to Micro-, Small and Medium-sized Enterprises

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has invested USD 28 million in Bhutan National Bank, a publicly owned commercial bank, to increase its lending to micro-, small and medium-sized enterprises. The goal of the equity investment is to allow the Bhutan National to target low-income populations and rural areas. IFC also plans to advise the bank on risk management and corporate governance.

As of 2012, IFC reported total assets of USD 75.7 billion. Bhutan National Bank operates in 13 of the country’s 20 districts. For the year 2011, the bank reported total assets of BTN 25.7 billion (USD 474 million). Information on the number of customers is not available.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.

About Bhutan National Bank
Incorporated in 1980, Bhutan National Bank is a publicly owned commercial bank in Bhutan operating in 13 of the country’s 20 districts. For the year 2011, the bank reported total assets of BTN 25.7 billion (USD 474 million). Information on the number of customers is not available.

Sources and Additional Resources:

[1] International Finance Corporation: “Press Release: IFC Invests $28 million in Bhutan National Bank to Promote Inclusion, Small Businesses” by Minakshi Seth, http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/B86F3333D3E374B185257B2F003E56B7

MicroCapital.org story, May 24, 2012, “Bhutan Royal Monetary Authority (RMA) Set to Approve Financial Inclusion Policy, Wholesale Microfinance Lender”, https://www.microcapital.org/microcapital-brief-bhutan-royal-monetary-authority-rma-set-to-approve-financial-inclusion-policy-wholesale-microfinance-lender/

MicroCapital.org story, March 30, 2011, “International Finance Corporation (IFC) Extends $5m Trade Facility to Laxmi Bank of Nepal to Support Small Businesses”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-extends-5m-trade-facility-to-laxmi-bank-of-nepal-to-support-small-businesses/

MicroCapital Universe Profile: International Finance Corporation (IFC),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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