CDC Group (soon to become British International Investment), the UK’s development finance institution, has announced a US $25 million loan to Global IME Bank Ltd (“GIME”), one of the largest commercial banks in Nepal. CDC’s commitment will enhance GIME’s ability to provide credit to businesses across key economic priority sectors and stimulate economic opportunities throughout the country.

The facility will also help address funding gaps in the market by strengthening GIME’s capacity to increase lending to businesses in key economic sectors, such as infrastructure, construction, manufacturing, agriculture, and tourism. This much-needed capital will enable the Bank to offer financial support to more businesses, enhancing their ability to navigate post-covid recovery and create jobs that will facilitate sustained inclusive growth across all segments of society in Nepal.  

Moreover, the loan will amplify GIME’s plans to broaden its offer to key sectors, including renewable energy and tourism sectors, classified by the Government of Nepal as priority sectors for the country. The Bank’s goal to provide local and foreign currency longer-term lending to businesses within these sectors and others, aligns with CDC’s ambition to increase green finance and help scale clean energy and infrastructure projects across its markets, including in key countries like Nepal. 

The DFI’s commitment to GIME forms part of its strategy to bring the best of British finance to help accelerate productive, sustainable, and inclusive opportunities in market shaping sectors that create jobs and usher in transformative positive impact in Nepal and throughout the wider region. CDC’s commitment to Nepal is demonstrated by its investment in the country’s leading internet provider WorldLink, as well as its commitment to NMB Bank and the Upper Trishuli-1 Hydroelectric Project. This year, the DFI invested in Nepal-focussed Dolma Fund II and partnered to launch the Nepal Invests market building platform, aimed at accelerating foreign direct investment into the country.