White Lotus is an advisory firm in Nepal that will manage the operations of the Fund with three core team members led by Siddhant Raj Pandey. WLC team comprises of bankers and development experts with experience in entrepreneurship development and SME financing in Nepal.

The target fund size is $10 million, of which IFC would provide up to $7 million. In addition, IFC acting as Implementing Entity of the PPCR, and DFID will invest up to US$3.6 million and up to US$4.0 million respectively.

7.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.70
Equity	0.30

* These investment figures are indicative

The Fund will be structured as a corporation domiciled in Nepal.

IFC Ventures focuses on high risk IDA countries where few other sources of financing for small business operate. The program will directly build the local capacity of financial intermediaries to manage sustainable investment funds for small businesses, providing both risk capital and critical advisory assistance.     

The SME Ventures program was initiated and designed by IFC. In addition to providing funding, IFC will help establish the incentives and advisory structures to enable the creation of risk capital platforms to invest in small businesses in IDA countries. The process of developing the program already has placed IFC in the forefront of DFIs working with small businesses in emerging markets. Only a few financial intermediaries focus on small businesses in higher risk IDA markets.     

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Performance Requirements which will be a combination of (i) the IFC FI Exclusion List, (ii) the applicable National Social and Environmental Laws and Regulations and (iii) the IFC Performance Standards. IFC will also review the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (“SEMS”). Based on the assessment, the Fund Manager will be required to:



(i) develop SEMS, prior to commitment, to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements,

(ii) identify responsible, qualified persons to manage and implement the SEMS,

(iii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, and

(iv) submit a periodic report to IFC as per a format to be provided by IFC.



Additionally IFC will review the implementation and performance of the Fund’s SEMS for the first three projects, prior to the Fund’s investment, to ensure that the SEMS is robust.