BII and Sanima Bank sign $15 million loan deal to support clean energy sector in Nepal
Last Updated on February 21, 2025 6:00 am
British International Investment (BII), the UK’s development finance institution, has signed a $15 million trade loan agreement with Sanima Bank of Nepal. The credit facility will support Sanima Bank’s trade finance activities, funding the import of capital goods for renewable energy projects, particularly in hydropower, as well as manufacturing, food, and agriculture.
Hydropower accounts for over 90% of Nepal’s electricity generation, and the government aims to develop 15GW of electricity by 2035. The financing from BII will contribute to this goal by supporting the construction of renewable energy plants and the import of hydromechanical and electromechanical equipment, solar energy systems, and raw materials for manufacturing and agriculture.
British Ambassador to Nepal, Rob Fenn, said: “This facility from British International Investment underscores the UK’s commitment to sustainable economic development in Nepal which will benefit households and businesses throughout the region.”
Habib Yousuf, Regional Director for South Asia at BII, stated: “BII is thrilled to partner with Sanima Bank to enhance its climate finance lending. This facility will help to improve access to affordable, reliable, and clean energy for businesses and households in Nepal. The positive impact of this will be far-reaching, contributing to sustainable development and improving the quality of life for countless individuals.”
Pawan Kumar Acharya, Deputy Chief Executive Officer of Sanima Bank, added: “This partnership marks a significant step towards accelerating Nepal’s transition to sustainable energy sources while addressing the country’s growing energy needs. This endeavour also aligns with global efforts to reduce reliance on fossil fuels and combat climate change. Sanima Bank envisions to promote low-carbon energy projects that foster economic growth and create long-term positive impacts for local communities.”
The agreement supports Nepal’s broader strategy to boost clean energy production and increase electricity exports to neighbouring countries, including India and Bangladesh.