Global IME Bank Secures USD 25 Million Loan from Global Climate Partnership Fund for Climate-Positive Projects in Nepal

Global IME Bank Limited (GIBL) and the Global Climate Partnership Fund (GCPF) have entered into a significant agreement by signing a USD 25 million loan deal. This collaboration marks a milestone for climate-positive lending in Nepal and signifies the first climate-related funding provided by GCPF to the country. The funds are specifically designated for supporting energy efficiency and renewable energy projects, thereby strengthening the bank’s portfolio and underscoring its commitment to climate change mitigation.

GCPF operates as a blended partnership model, utilizing public funding to stimulate private sector investment and growth in emerging markets. This approach aligns with GCPF’s mission to address climate change issues and greenhouse gas emissions. GIBL’s Chief Executive Officer, Mr. Ratna Raj Bajracharya, emphasized the role of this partnership in financing energy efficiency projects and reducing greenhouse gas emissions in Nepal. He stated, “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.”

Mr. David Diaz Formidoni, Head of FI Investments and Climate Finance at GCPF, expressed their commitment to expanding their presence in Nepal, a country highly vulnerable to climate change. He added, “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.”

The Global Climate Partnership Fund, headquartered in Luxembourg, is dedicated to mitigating climate change through the reduction of greenhouse gas emissions in emerging and developing markets. The fund focuses on financing projects related to energy efficiency and renewable energy through local financial institutions or direct investments. To be eligible for funding, projects must generate significant energy savings and commit to reducing projected greenhouse gas emissions by at least 20%. GCPF was established as a public-private partnership in 2009 by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW Entwicklungsbank, and the International Finance Corporation (IFC). It receives junior catalytic capital from various entities, including the Department for Energy Security and Net Zero (DZNEZ) of the UK and Denmark’s development cooperation (Danida), among others.

Global IME Bank Limited is the largest bank in Nepal in terms of total assets, consistently growing in size and profitability each year. The bank maintains a large and stable deposit base, boasts a low cost-to-income ratio, and demonstrates high asset quality and profitability. The bank’s extensive network comprises over 1,100 service centers, including branch offices, ATMs, branchless banking services, extension and revenue collection counters, and three foreign representative offices. For the fiscal year ending on July 16, 2023, the bank reported total assets of USD 4,049 million, a loan book of USD 2,845 million, net worth of USD 451 million, and deposits amounting to USD 3,279 million. With a strong asset quality and healthy profitability, GIBL is rated “A” by ICRA. The bank’s vision is to become “The Bank for All” and actively contributes to Nepal’s economy.

Global IME Bank has been honored by the Nepal Rastra Bank, the country’s central bank, for its substantial contribution to facilitating the inflow of remittances. In the fiscal year 2021/22, the bank played a pivotal role in channeling 15.65% of the total remittances into Nepal.