17 December 2019

“CDC can value add to Nepal’s growth through the investments and partnerships with local businesses”

In early 2019 CDC Group made our first investment in Nepal with a US$15 loan to NMB Bank, one of the country’s leading commercial lenders.

Since then we have announced a $12 million equity investment into Nepal’s leading internet provider WorldLink and a $21.9 million debt investment into Upper Trishuli-1 Hydroelectric Project bringing hydroelectricity to millions of people across the country. We are excited to put more capital to work in Nepal and will continue to look for domestic investment opportunities which will create lasting development impact, boost economic growth and improve the lives of Nepalese people.

As we grow our presence in Nepal in the coming years Srini Nagarajan, our Head of Asia, met with NewBiz Editor Mukul Humagain to discuss foreign direct investment and our commitment to local businesses and communities across the country.

NewBiz Editor Mukul Humagain: “2019 has been quite a year for your group in Nepal.  What led the CDC Group to come to Nepal?”

Srini Nagarajan,Head of Asia, said:

“Ultimately, we recognised that we could support Nepal in three ways. First, it requires long-term capital from a patient investor such as the CDC Group. Short term money is not beneficial for the people and does not stimulate economic growth. Second, to fuel the growth of local enterprises Nepal needs more equity investors, in addition to the large number of debt providers in the country. Our investment in WorldLink is an equity investment. When you put in equity, you work closely with an ambitious management team to help grow the business and ultimately benefit the country.

Third, CDC can value add to Nepal’s growth through the investments and partnerships with local businesses; we are active investors and support sustainable growth by strengthening talent and organisation effectiveness; enhancing corporate governance and board teams, building compliance and risk management as well as environmental and social (E&S) strategies.”

 

Read the full interview here: https://newbusinessage.com/MagazineArticles/view/2695

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