Project detail - CLEAN ENERGY DEVELOPMENT BANK LTD.

CLEAN ENERGY DEVELOPMENT BANK LTD.

Status: Completed investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Nepal's Clean Energy Development Bank (CEDB) was incorporated in 2005 and became operational in September 2006. CEDB is set up to exploit opportunities in the energy sector, mainly hydro but including solar, bio-digesters and other forms. The financial sustainability of the bank is linked to its ability to build managerial capacity and initiate partnerships with other financial institutions to ensure effective financial intermediation for the clean energy sector.

What is our funding objective?

Through this project FMO will provide CEDB with Capacity Development funding to support the development and roll out of a pilot project in promoting renewable energy technologies (RETs) or remote, rural households. The main objective of the pilot is to demonstrate the viability of a business model whereby CEDB provides wholesale loans to local financial institutions/cooperatives that are used specifically to finance RETs. The pilot will take place in two of Nepal's less developed districts and, if successful, will be replicated in other regions of the country as well.

Why do we fund this investment?

The outcome of this project will be the establishment of a financing model that contributes to increased access to finance and energy for low-income households and small businesses in Nepal's deprived districts. In doing so, the project will contribute to improved livelihoods in terms of health, wealth and income generation.

Region
Asia
Country
Nepal
Sector
Financial Institutions
Effective date
7/1/2013
End date
11/21/2016
Total FMO financing
EUR 0.16 MLN
Funding
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B