BII extends US$15mn loan to Sanima Bank for Nepalese hydropower - Global Trade Review (GTR)
BII extends US$15mn loan to Sanima Bank for Nepalese hydropower - Global Trade Review (GTR)
Published January 07, 2026
BII Provides US$15 Million Loan to Sanima Bank for Hydropower Development in Nepal
British International Investment (BII), the UK's development finance institution, has announced the approval of a US$15 million loan to Sanima Bank Limited. This financial assistance is aimed at bolstering the hydropower sector in Nepal. The investment is part of BII's strategic commitment to support renewable energy initiatives and sustainable development in emerging markets.
Sanima Bank, a prominent financial institution in Nepal, will utilize the funds to enhance its lending capacity for hydropower projects. This initiative is crucial as Nepal possesses significant hydropower potential, estimated at around 83,000 megawatts, of which approximately 43,000 megawatts are technically and economically feasible for development. However, only a fraction of this potential has been harnessed to date.
The loan from BII is expected to facilitate the financing of various hydropower projects across the country, which are essential for meeting Nepal's growing energy demands and achieving energy security. The investment aligns with BII's mission to promote sustainable economic growth by fostering access to clean and affordable energy.
Hydropower plays a vital role in Nepal's energy landscape, providing a renewable source of electricity that can help reduce reliance on fossil fuels. The country has been actively working to develop its hydropower resources, with the government setting ambitious targets to increase electricity generation and export surplus energy to neighboring countries.
In recent years, the Nepalese government has implemented policies to attract investment in the hydropower sector, including incentives for both domestic and foreign investors. The support from BII is anticipated to further stimulate investment in this critical sector, contributing to job creation and economic development in Nepal.
Furthermore, the loan will assist Sanima Bank in extending its financial products tailored specifically for hydropower projects. This includes offering competitive interest rates and flexible repayment terms to encourage more developers to engage in the hydropower sector.
As part of its broader strategy, BII aims to mobilize private sector investment in sustainable infrastructure projects. The organization recognizes that public funding alone is insufficient to meet the growing energy needs of developing countries. Therefore, partnerships with local financial institutions like Sanima Bank are essential for scaling up investment in renewable energy.
In addition to providing financial support, BII also emphasizes the importance of capacity building and technical assistance. The institution aims to enhance the capabilities of local banks in assessing and financing renewable energy projects, ensuring that they are well-equipped to support the growth of the sector.
The collaboration between BII and Sanima Bank highlights the increasing recognition of the hydropower sector's potential in Nepal. With the right financial backing and supportive policies, the country can significantly increase its electricity generation capacity, reduce energy imports, and contribute to regional energy stability.
In conclusion, the US$15 million loan from BII to Sanima Bank represents a significant step towards unlocking Nepal's hydropower potential. By facilitating access to finance for renewable energy projects, this partnership aims to drive sustainable development and improve energy access for the Nepalese population.
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