GCPF expands its climate positive lending to Nepal, with a focus on electric mobility

Global IME Bank Limited and GCPF signed a USD 25m loan agreement to promote climate positive lending in Nepal.

Notably, this marks the first climate-related funding provided by the fund to a company in Nepal. The capital is earmarked for financing energy efficiency and renewable energy projects in the country, with a focus on the electric mobility sector. The infusion of these funds will fortify the bank’s portfolio and solidify its commitment to climate change mitigation.

Commenting on the development, Mr. Ratna Raj Bajracharya, CEO of Global IME Bank stated “This 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 the fund 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 the tailored advisory support that we provide” says Mr. David Diaz Formidoni, Head of FI Investments, Climate Finance, on behalf of GCPF.

About the Global Climate Partnership Fund (GCPF)

The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. 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% are eligible for funding.

GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMU, the department for Business, Energy and Industrial Strategy (BEIS) 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.

About Global IME Bank

Global IME is the first commercial bank in the private sector to establish a branch network in all 77 districts of Nepal. The bank serves over 4.6 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.

As of 16 July 2023, the Bank reported total assets of USD 4.0 billion, loan book of USD 2.8 billion, net worth of USD 451 million and deposits of USD 3.3 billion. The bank’s vision is to become “The Bank for All” and it has consistently expanded its reach to serve every corner of Nepal, diversifying its assets while contributing significantly to the overall Nepalese economy.

About responsAbility Investments AG

responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, responsAbility has deployed over USD 13 billion in impact investments. With over 200 employees collaborating across seven offices, as of 1 March 2023 the company manages USD 4.8 billion in assets across approximately 280 portfolio companies in 74 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.