Two banks to invest for constructing third-party storage service project

KATHMANDU, MARCH 24: A consortium of two banks, led by Citizens Bank International, along with Machhapuchhre Bank, will invest Rs. 950 million in the country’s first-ever third-party storage service project.  A co-financing loan agreement was signed between the promoter company, Upaya Warehousing Pvt. Ltd., and the investor banks to manage the project’s financials yesterday.

The project will be located at Nasika of Sanga in the Kavrepalanchok district. The total estimated cost of the project is approximately Rs. 1.20 billion, with the consortium providing a total of Rs. 950 million in periodic loans (excluding interest during the construction phase). The investment will follow an 80:20 loan-equity ratio.

Citizens Bank International will invest Rs. 60 million, which includes Rs. 50 million in periodic loans, Rs. 5 million in bank guarantee facilities, and Rs. 5 million in cash credit loans.

Meanwhile, Machhapuchhre Bank will invest Rs. 35 million in periodic loans. The remaining equity will be contributed by the promoters.

The project aims to be completed within two years, with storage services expected to begin once construction is finished.

Speaking at the signing ceremony, Ganesh Raj Pokharel, CEO of Citizens Bank, emphasized that since its establishment, the bank has made significant investments in sectors such as hydropower, green energy, hospitals, manufacturing, and more, both independently and through co-financed loans with other banks.

On behalf of the promoting company, Upaya Warehousing, Chairman Suman Rayamajhi stated that the project will offer third-party storage services, packaging, office supply management, leveling, transportation services, and more.

He expressed confidence that the project would be completed on time, following all necessary legal processes with the relevant government authorities.