KATHMANDU, MAY 26
British International Investment (BII), the newly rebranded UK government's development finance institution (DFI) formerly known as Commonwealth Development Corporation (CDC), has announced that it has invested over $100 million in Nepal.
During a press meet held at the British Embassy today, the DFI reaffirmed its commitment to continue building relationships with businesses that increase economic activities, leverage its expertise to support innovation and work with partners to help bring more investments that can accelerate Nepal's development priorities.
Talking to media persons, BII CEO Nick O'Donohoe announced that the BII, following its rebranding and start of its new five-year strategy, will pursue investment opportunities in Nepal that can drive innovation and boost digital transformation.
He stated that the BII will also devote its patient and long term capital to help increase climate resilience and clean infrastructure across its markets, including Nepal.
"We will deploy 30 per cent of our investments in Asia and Africa towards climate finance and continue to support the growth of renewable energy generation as we have been doing through the Upper Trishuli Hydropower Project, doing our part to increase the supply of clean and reliable energy for millions of Nepali people and businesses," O'Donohoe said.
He further said, "We are currently working with two banks in Nepal and we would like to work with more of them. The biggest barrier to working with more banks is related to environmental, social, governmental standards. So I think there is a real opportunity for Nepali banks if they embrace some high standards and attract a broader range of foreign capital."
He also said that the BII will support young, ambitious entrepreneurs who are creating businesses that offer solutions that can transform societies, adding that the BII is already doing it through 'Invest for Impact Nepal', a first-of-its-kind market shaping platform that was launched in 2021. "This will help foreign direct investment into Nepal and unlock the country's growth potential," he said.
Meanwhile, British Ambassador to Nepal, Nicola Pollitt shared that supporting sustainable economic development in Nepal is the top priority for the embassy. "BII's investments in Nepal are a part of the UK's overarching support toward this larger goal. Our programmes are working with the Nepal government towards improving the country's investment environment and with the private sector to build local market capabilities to attract foreign investors such as BII."
The BII has been investing in Nepal for more than four years, and officially established its presence in the country in 2020 with the appointment of Rabi Rayamajhi as country representative.
Portfolio in a nutshell
BII's portfolio of over $100 million in Nepal is supporting five businesses and one fund, across a variety of sectors including financial services, clean infrastructure and telecommunications.
These investments include:
• Providing capital through a $15 million loan to NMB Bank, enabling the bank to extend its lending to support key sectors including SMEs, infrastructure, agriculture as well as foreign currency-earning sectors such as tourism and hydropower projects.
• Improving access to affordable and quality internet through a $12 million investment with WorldLink, which is helping to stimulate productivity in Nepal.
• Increasing access to clean and reliable energy supply for millions of people and businesses across the country by investing $21.9 million in the Upper Trishhuli Hydropower Project, which is expected to create over 20,000 jobs across multiple sectors.
• Supporting Nepal's post-pandemic economic recovery and increasing green finance by investing in the $40 million first close of Dolma Impact Fund II and a $25 million loan in Global IME Bank.
• Supporting critical trade for several financial institutions in Nepal through partnership with Standard Chartered Bank.
A version of this article appears in the print on May 27, 2022, of The Himalayan Times.
