Kathmandu, Apr. 20
The Non-Resident Nepali Association (NRNA) has launched its Rs. 10
billion NRN Nepal Development Fund Limited that will invest in infrastructure
and productive sectors in Nepal.
The fund will have Rs. 9.5 billion shares of NRNs and Rs. 500 million of
the Government of Nepal, the NRNA informed at a press conference jointly
organised with the Ministry of Finance at the latter’s office in Singha Durbar
on Monday.
The NRNA had started the process of the fund’s registration in February
this year. Its President Kumar Pant had announced to establish the fund after
his election to the post in October 2019 to bring at least Rs. 10 billion
foreign investment in Nepal.
NRNA hopes that the fund would encourage small investors in foreign
countries. About 85 per cent investment in the fund
would be made by Nepalis from around the world.
They can invest any
amount equal to or higher than US$10. The government had pledged to contribute
Rs. 500 million to the fund and the promoters would invest Rs. 1 billion, 10
per cent.
Speaking on the occasion, Finance Minister Bishnu Prasad Paudel urged
the NRNs to play the role of the investment ambassadors and spread the message
that Nepal is having investment-friendly environment.
“The government is committed to attracting foreign direct investment and
creating better policies and laws for the same. The country needs more capital
for its development,” he said.
However, he stated that the investment coming into Nepal should be from
legal sources, come from banking channel, and be invested in national priority
sectors.
Governor of the Nepal Rastra Bank Maha Prasad Adhikari said that the
company that emerged as a public-private-partnership has raised hopes among the
public. He stated that Nepal has investment opportunities in multiple sectors.
Finance Secretary Shishir Kumar Dhungana suggested developing the fund
as a holding company in order to achieve the goal.
Pant said that in a few years from now, the fund will have about Rs. 50
billion money for investment.
The fund has received Rs. 3 billion investment commitment till now. It
aims to invest in enterprise, business, transportation and infrastructure
sectors in Nepal.
NRNA said that the fund would soon issue initial public offering (IPO)
to raise money from NRNs.
Published in The Rising Nepal daily on 21 April 2021.
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