Global IME Bank Limited and the Global Climate Partnership Fund have signed a $25 million loan agreement to promote climate-positive lending in Nepal.

This marks the first climate-related funding provided by the Global Climate Partnership Fund (GCPF) to Nepal. The funds are earmarked for financing energy efficiency and renewable energy projects in the country.

The infusion of these funds will fortify the bank’s portfolio and solidify its commitment to climate change mitigation, the bank said in a press statement.

Global Climate Partnership Fund operates as a blended partnership model, using public funding to catalyse the private sector investment models and growth in developing markets.

Ratna Raj Bajracharya, CEO of Global IME Bank stated, "This Global Climate Partnership Fund 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 GCPF to fulfil 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 our in-house team of Climate Advisory Specialists and the fund’s Technical Assistance Facility,” said David Diaz Formidoni, Head of FI Investments and Climate Finance.

The Luxembourg-based 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.

GCPF was established by the German Federal Ministry for Economic Affairs and Climate Action, KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership.