BII, Sanima Bank sign trade loan agreement

Kathmandu, Feb. 19

British International Investment plc (BII), the UK’s development finance institution and impact investor, and Sanima Bank Ltd. have entered into a trade loan agreement of US$ 15 million (Rs. 2.2 billion).

The credit line will strengthen Sanima Bank’s trade finance offering, funding the import of capital goods for renewable energy projects with a focus on hydropower, as well as manufacturing, food and agriculture goods, the bank said in a statement.

The agreement was signed at the UK-Nepal Business Forum organised by the UK's Department for Business and Trade in collaboration with the British Embassy in Kathmandu on Tuesday.

According to the bank, the facility from BII will contribute to the government’s goal to boost the clean energy supply in Nepal and increase the export of surplus energy to neighbouring countries in South Asia, including India and Bangladesh.

It will provide finance to support the construction of renewable energy plants, import of hydromechanical and electro-mechanical equipment and solar energy equipment along with procurement of raw materials for manufacturing process and agriculture goods, among others.

British Ambassador to Nepal, Rob Fenn, said that the facility from the BII underscored the UK’s commitment to sustainable economic development in Nepal which would benefit households and businesses throughout the region.

“This facility will help to improve access to affordable, reliable, and clean energy for businesses and households in Nepal,” said Habib Yousuf, BII's Regional Director for South Asia.

Pawan Kumar Acharya, Deputy CEO of Sanima Bank, said that Sanima Bank envisions to promote low-carbon energy projects that foster economic growth and create long-term positive impacts for local communities.

Published in The Rising Nepal daily on 20 February 2025.