Law firm TT&A provides counsel to IFC on financing Worldlink Communications' undertakings in Nepal
International Finance Corporation Extends $14 Million Loan to Boost Nepal's Digital Infrastructure
The International Finance Corporation (IFC) has announced a significant investment in Nepal's digital future, extending a term loan of approximately $14 million (Rs 1.93 billion) to WorldLink Communications Limited and its subsidiary Data World Private Limited. This financing is aimed at expanding Nepal's fibre network and developing data centers across the country, with the ultimate goal of bridging the digital divide and promoting inclusive economic growth [1][2][3].
The advisory team for this project was led by Gautam Saha and Nikhil Bahl, both Partners at Talwar Thakur and Associates (TT&A), with legal consulting services provided by TT&A and Pioneer Law Associates from India and Nepal, respectively [1][2][3].
In addition to the term loan, IFC is offering a partial credit guarantee of up to $12 million to stimulate additional lending from a local commercial bank, Standard Chartered Bank Nepal. This move is expected to mobilize further debt financing for WorldLink and Data World [1][2][3].
The investment is supported by the International Development Association’s (IDA) private sector window local currency facility, underscoring its developmental objective to expand Nepal’s network infrastructure and facilitate digital transformation [1][2]. WorldLink Communications, the largest internet and network service provider in Nepal and a leading IT company, will use this investment to scale up Nepal's digital infrastructure, including fiber-optic connectivity and modern data centers [1][2][3].
This financing aligns with earlier commitments by IFC and Standard Chartered Bank to invest approximately Rs 4.9 billion towards similar infrastructure development for broadband and data services expansion [1]. The loan and guarantee structure reflect a blended finance approach, leveraging IFC’s support to de-risk local bank lending, enable capital influx for strategic IT infrastructure, and foster Nepal's broader economic and digital development [1][2][3].
Anup Upreti, Managing Partner at TT&A, leads the transaction team, with support from Associates Dipti Sapkota and Sujan Shrestha. Siddharth Tandon, Managing Associate, and Maansi Mehta, Associate, also contributed to the advisory work. Dipti Sapkota and Sujan Shrestha, Associates at TT&A, are part of the transaction team for the guarantees. Daksh Middha, Senior Associate, also assisted on the matter at TT&A [1].
IFC will extend the partial credit guarantee in its capacity as Implementing Entity of the IDA20 Private Sector Window Blended Finance Facility [1]. Pioneer Law Associates acted as the Nepal counsel for IFC [1]. The proposed guarantees are for Worldlink Communications Limited and its subsidiary Data World Private Limited [1].
[1] Source: IFC Press Release, 2022 [2] Source: WorldLink Communications Limited Press Release, 2022 [3] Source: Standard Chartered Bank Nepal Press Release, 2022
The International Finance Corporation's investment of $14 million aims to stimulate business growth in Nepal by improving digital infrastructure, specifically through expanding fibre networks and developing data centers. To augment this financing, IFC offers a partial credit guarantee of up to $12 million to attract further investing from Standard Chartered Bank Nepal, thus leveraging technology to foster digital business progress.
