Thursday, October 24, 2019

CDC Group, WorldLink ink investment deal

The UK’s development finance institution CDC Group today announced its investment of Rs 1.35 billion (approximately $12 million) in the private sector internet service provider WorldLink.
The investment is expected to facilitate WorldLink in aggressively expanding its internet network throughout the nation reaching out to the most marginalised areas, according to a press note issued by the company. “CDC Group has made the investment in WorldLink as equity, securing 10 per cent share in the company.”
This marks CDC’s first equity investment in Nepal but also second investment in the country this year. Earlier, CDC Group has injected a three-year loan of $15 million in NMB Bank.
“The investment will help fund WorldLink’s ambitious expansion throughout Nepal, reaching further remote territories and connecting hundreds of thousands of households and small enterprises to the internet,” confirmed the WorldLink that has grown into the country’s largest internet service provider, laying over 8000-km of fibre and reaching some of the most remote places like Chhatrakot Rural Municipality and Ruru Rural Municipality.
CDC’s capital will accelerate its expansion, helping WorldLink to provide even more small businesses and families with a reliable internet source. WorldLink – as claimed by itself – is already a large employer, particularly of young people, with nearly 3000 employees. “CDC’s investment will support the hiring of over 1,000 additional employees,” the WorldLink, said, adding that CDC will also help develop a skills and training programme for all staff and progress health and safety standards.
“We firmly believe in the power of connectivity to help bring communities out of poverty,” managing director and head of Asia at CDC Srini Nagarajan said, adding that advancing the internet to MSMEs across Nepal gives them access to global trade and markets. “It also brings families into contact in Nepal and overseas.”
CDC’s capital will help accelerate this, helping it reach further remote regions.
“We are delighted to be creating long term partnerships in a country where our capital will make a meaningful difference to people’s lives,” he added.
“We feel honoured to be the first CDC equity investment in Nepal,” managing director of WorldLink Dileep Agrawal. “It is a recognition of our 24 years’ hard work and commitment to Nepal’s internet and telecoms industry,” he said, adding that with CDC’s backing, our ambition is to transform Worldlink into a world-class company that will serve as a model and inspiration to other companies in Nepal. “Our partnership will accelerate our pursuit to connect everyone, anywhere, all the time.”
Compared to other countries in Asia, access to digital services remains low in Nepal and presents a real challenge for the development of businesses. Improving access to affordable and quality internet is central to Nepal’s development and economic growth, and a key part of UN Sustainable Development Goal 9 (SDG9).

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