Mount Rasuwa Hydropower financial closure

Kathmandu, July 14. Laxmi Bank has completed financial closure of Mount Rasuwa Hydropower Pvt. Ltd. on July 14, 2021 to finance 13.424 MW run of the river Midim-1 Hydropower Project being constructed at Kwholasothar and Marsyandi Rural Municipality of Lumjung, Gandaki Province. The project is being built at the cost of around NPR 2.938 Billion.

The project will be funded through 70 percent loan and 30 percent equity. Mount Rasuwa Hydropower Pvt. Ltd.  has signed the Power Purchase Agreement with Nepal Electricity Authority on January 21, 2019 and the project received Generation License from the Ministry of Energy on October 29, 2020. The company is promoted by Rasuwa Construction Company Pvt. Ltd along with individual promoters where Mr. Rajendra Raj Archarya is the Chairperson.

Midim-1 Hydropower Project (with the capacity of 13.424 MW) expects to contribute around 83.17GWh of power annually to the nation and it is expected to come into operation in July 20, 2023.

About Laxmi Bank

Laxmi Bank was established in 2002. Its network includes to 132 branches across 48 districts, 5 hospital service counters, 6 extension counters, 161 ATMs, 2,500 remittance agents and 61 branchless banking agents spread across the country. Today, through its branches and a host of IT enabled channels, the Bank serves a wide range of customers.

Despite a relatively short history, Laxmi Bank has emerged as a major player across all business lines – retail, midmarket, corporate, infrastructure and treasury. The Bank is widely recognized as one of the best-managed banks in Nepal with high standards of corporate governance culture, risk-management systems and a strong technology.

Laxmi Bank’s microfinance subsidiary – Laxmi LaghubittaBittiyaSanstha Ltd, a category D financial institution licensed by Nepal Rastra Bank is in operation since 2012 and has a network of 72 branches with loans of over NPR 4 billion.

Similarly, Laxmi Bank’s investment banking subsidiary – Laxmi Capital Market Ltd, licensed by the Securities Board of Nepali’s offering various merchant and investment banking services since February 2009. Laxmi Capital also manages Laxmi Equity Fund and Laxmi Unnati Kosh, the two Mutual Funds sponsored by Laxmi Bank, both of which are listed and traded at the Nepal Stock Exchange.

The Bank closed the previous financial year 2019/20 with a balance sheet size of NPR 129 billion that includes deposits and risk assets of NPR  100.07 billion and NPR 89.89 billion respectively. All key financial indicators of the Bank are well within prudential and regulatory norms.