CDC Group Plc., a development finance institution owned by the UK government, has invested as much as NPR 135 crore (approximately $12 million) in Nepal’s largest internet service provider WorldLink, according to an announcement.
The funding, which marks CDC’s first equity investment in Nepal, will help fund WorldLink’s expand its operations across the country and tap remote territories.
WorldLink, headquartered in Kathmandu, was established in September 1995 with the aim of providing Internet and IT services. With 8000km of fiber spread across the country’s most remote places, it is all set to extend its internet services to Karnali, the most mountainous and underdeveloped province in Nepal.
The company, which now has nearly 3000 employees, will use the CDC’s investment to support its hiring of over 1,000 additional employees and develop skills and training programme for all staff and progress health and safety standards.
“This is CDC’s second investment in Nepal this year. We are delighted to be creating long term partnerships in a country where our capital will make a meaningful difference to people’s lives,” said Srini Nagarajan managing director and head of Asia at CDC.
CDC Group plc, that has net assets of £5.8 billion, has invested in Africa and Asia for 70 years.
Earlier this year, CDC provided $15 million, in a three-year loan to NMB Bank, one of the Nepal’s leading commercial banks.
In September, CDC invested in Myanmar Private Equity and Venture Capital Association. Earlier, The UK-based group invested $30 million in Yangon’s internet service provider Frontiir, marking its first direct equity investment in Myanmar.