CDC Group Plc, which is soon to be rebranded as British International Investment, has made its second direct financial services investment in Nepal with a $25 million loan to Global IME Bank Ltd.
The loan will enhance the ability of Global IME Bank, one of the largest commercial banks in Nepal, to increase lending to businesses in key sectors such as infrastructure, construction, manufacturing, agriculture and tourism.
“Flexible and long-term capital is greatly needed to help drive the country’s green post-pandemic recovery, and it will ensure that local businesses have access to the finance they need to thrive,” said Srini Nagarajan, managing director and Asia head at CDC.
The UK’s development finance institution has in the past backed Nepal’s leading internet provider WorldLink, NMB Bank and the Upper Trishuli-1 Hydroelectric Project. This year, it also invested in Nepal-focussed Dolma Fund II.
Led by Ratna Raj Bajracharya, Global IME Bank was created with the merger of Global Bank Ltd, IME Financial Institution and Lord Buddha Finance Ltd in 2012. Since then, it has added heft with multiple inorganic expansion moves.
In 2013, Global IME Bank absorbed Social Development Bank and Gulmi Bikas Bank. A year later, Commerz and Trust Bank Nepal Ltd also joined the group.
During 2015-16, Global IME Bank acquired Pacific Development Bank and Reliable Development Bank. Two years ago, it also took over Hathway Finance Ltd and merged with Janata Bank Nepal Ltd.
The bank’s shares are publicly traded on the Nepal Stock Exchange.