Kathmandu/Luxembourg: Global IME Bank Limited (GIBL) and the Global Climate Partnership Fund (GCPF) signed a USD 25 million loan agreement to promote climate positive lending in Nepal.
This marks the first climate-related funding provided by GCPF to Nepal.
“The funds are earmarked for financing energy efficiency and renewable energy projects in the country. The infusion of these funds will fortify the bank’s portfolio and solidify its commitment to climate change mitigation” a statement issued by Global IME reads.
The GCPF operates as a blended partnership model, using public funding to catalyze private sector investment models and growth in developing markets.
Commenting on the development, Ratna Raj Bajracharya, CEO of Global IME Bank said: “This Global Climate Partnership Fund (GCPF) facility will play a crucial role in financing energy efficiency projects and reducing greenhouse gas emissions in Nepal. We take pride in being a responsible bank in our country and are committed to supporting energy projects in collaboration with GCPF to fulfill our strategic climate management objectives.”
“We are happy to expand our presence to Nepal, a country highly vulnerable to climate change, by partnering with a committed and like-minded financial institution like Global IME Bank. We look forward to supporting the bank in its climate financing journey through our in-house team of Climate Advisory Specialists and the fund’s Technical Assistance Facility” said David Diaz Formidoni, Head of FI Investments and Climate Finance.
The Global Climate Partnership Fund is a Luxembourg-based fund. The Fund is an innovative public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20 percent are eligible for funding.
GCPF was established by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMWK, the Department for Energy Security and Net Zero (DZNEZ)of the UK, Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, Sparkasse Bremen, the European Investment Bank (EIB) and Heilsarmee.
Global IME is the first commercial bank in the private sector to establish a branch network in all 77 districts of Nepal, it claims. The bank serves over 4.5 million customers through a network of more than 1,100 service centers, which include 350 branch offices, over 369 ATMs, 322 branchless banking services, 66 extension and revenue collection counters, and maintains 3 foreign representative offices.