Project detail - CLEAN ENERGY DEVELOPMENT BANK LTD.

CLEAN ENERGY DEVELOPMENT BANK LTD.

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Who is our client

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.

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 we fund this project

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
Signing date
7/1/2013
Total FMO financing
EUR 0.16 MLN
Fund
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