British International Investment plc (BII), the UK’s development finance institution and impact investor, has signed a trade loan agreement worth 15 million US dollars with Sanima Bank Ltd. The loan is intended to strengthen Sanima Bank’s trade finance services, supporting the import of capital goods for renewable energy projects, particularly hydropower, as well as manufacturing, food, and agriculture sectors.

Hydropower is a major part of Nepal’s electricity supply, contributing over 90 percent of the country’s total generation capacity. The government has set a target to develop 15GW of electricity by 2035.

The BII facility aims to support the government’s efforts to expand clean energy production and increase surplus energy exports to South Asian neighbours, including India and Bangladesh. It will provide financial assistance for renewable energy plant construction, import of hydromechanical and electromechanical equipment, solar energy technology, and procurement of raw materials for manufacturing and agricultural goods.

British Ambassador to Nepal, Rob Fenn, said, “This facility from British International Investment reflects the UK’s commitment to sustainable economic development in Nepal, benefiting households and businesses throughout the region.”

Habib Yousuf, BII’s regional director for South Asia, said, “BII is pleased to work with Sanima Bank to expand climate finance lending. This facility will improve access to affordable, reliable, and clean energy for businesses and households in Nepal, supporting sustainable development.”

Pawan Kumar Acharya, deputy chief executive officer of Sanima Bank, said, “This partnership is an important step towards expanding Nepal’s sustainable energy sector while meeting its growing energy needs. It aligns with global efforts to reduce fossil fuel dependence and address climate change.”

Source: Kathmandu Post