April 23: At a time when the private sector of Nepal is facing challenges to raise financial resources from the international market, the Development Finance Institutions (DFIs) established by different countries have stepped forward to invest loans and shares in the private sector of Nepal.

Although the World Bank's International Finance Corporation (IFC) started investing in the private sector of Nepal only some time ago, other DFIs have been investing in the private sector of Nepal since a few years ago.

They have been investing through some commercial banks, private equity funds and also directly.

"Until now, DFIs have invested USD 1.1 billion in the private sector of Nepal," Bivek Shrestha, Chief Executive Officer of Invest for Impact Nepal, said in a press conference held on Monday. "Of this amount, more than USD 600 million have been mobilized through commercial banks."

The Invest for Impact Nepal was established through the joint effort of various DFIs. Invest for Impact Nepal coordinates their activities in Nepal.

British International Investment, Dutch International Development Bank, Swiss Investment Fund for Emerging Markets among others established the Invest for Impact Nepal.

A team of DFIs is currently in Kathmandu and they are participating in a seminar. Shrestha said that most of the DFI representatives will also participate in the upcoming investment summit announced by the government for April 28 and 29.

Shrestha said that the DFIs are currently investing mainly through commercial banks but are also considering the idea of investing through development banks and micro finance.

"During this seminar, there will also be a discussion on how to cooperate between DFIs and donor agencies to increase investment in Nepal," he said.