Kathmandu/Luxembourg, Global IME Bank Limited (GIBL) and the Global Climate Partnership Fund (GCPF) have entered into a loan agreement worth USD 25 million to support climate-positive lending initiatives in Nepal. This represents the first climate-related funding provided by GCPF to Nepal. The funds have been earmarked for the financing of energy efficiency and renewable energy projects within the country. This injection of capital will strengthen the bank’s portfolio and underscore its commitment to mitigating the impacts of climate change.
GCPF operates as a blended partnership model, leveraging public funding to stimulate private sector investment and growth in developing markets.
Mr. Ratna Raj Bajracharya, CEO of Global IME Bank, expressed, “This Global Climate Partnership Fund (GCPF) facility will play a pivotal role in financing energy efficiency projects and reducing greenhouse gas emissions in Nepal. We take great pride in being a socially responsible bank in our nation and are dedicated to collaborating with GCPF to support energy projects that align with our strategic climate management objectives.”
“We are delighted to extend our presence to Nepal, a country highly susceptible to climate change, by partnering with a committed and like-minded financial institution like Global IME Bank. We eagerly anticipate assisting the bank in its climate financing journey through our in-house team of Climate Advisory Specialists and the fund’s Technical Assistance Facility,” remarked Mr. David Diaz Formidoni, Head of FI Investments and Climate Finance.
The Global Climate Partnership Fund, headquartered in Luxembourg, is an innovative public-private partnership dedicated to combatting climate change by reducing greenhouse gas emissions in emerging and developing markets. It places a particular focus on financing energy efficiency and renewable energy projects, either through local financial institutions or directly. Only projects that promise significant energy savings and commit to reducing projected greenhouse gas emissions by a minimum of 20% are eligible for funding.
GCPF was established in 2009 as a public-private partnership, with junior catalytic capital provided by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the Department for Energy Security and Net Zero (DZNEZ) of the UK, Denmark’s development cooperation (Danida), among others, as private and public investors.
GIBL stands as the largest bank in Nepal in terms of total assets and has consistently expanded in size and profitability year after year. The bank boasts a substantial and stable deposit base, a low cost-to-income ratio, significant retail assets, strong asset quality, and commendable profitability. With an experienced senior management team and a clear vision for profitable growth while upholding high levels of corporate governance, GIBL has established itself as the first commercial bank in the private sector to establish branches in all 77 districts of Nepal. The bank’s extensive network, comprising over 1,100 service centers, includes 350 branch offices, 369 ATMs, 322 branchless banking services, 66 extension and revenue collection counters, and 3 foreign representative offices. As of the year ending July 16, 2023, the bank reported total assets of US$4,049 million, a loan book of US$2,845 million, a net worth of US$451 million, and deposits of US$3,279 million. The bank maintains robust asset quality, with a gross non-performing assets ratio of 3.08% and a provisioning coverage ratio of 116.27%, along with healthy profitability, with a return on total assets of 1.38% and a return on equity of 12.36%. GIBL holds an “A” rating by ICRA.
The bank’s vision is to become “The Bank for All” and has consistently expanded its reach to serve every corner of Nepal while diversifying its assets and making a significant contribution to the overall Nepalese economy. Notably, Global IME Bank has been recognized by the Nepal Rastra Bank, the central bank of Nepal, for its substantial role in facilitating the inflow of remittances, with the bank playing a pivotal role in channeling 15.65% of the total remittances into Nepal during the fiscal year 2021/22.”
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