CIT Sabhapokhari Hydropower Share Underwriting Agreement: NPR 107.5 Million Investment
2nd April 2025, Kathmandu
Citizen Investment Trust (CIT) and Sabhapokhari Hydropower Limited have signed a share underwriting agreement. This deal ensures the successful issuance of shares for the hydropower project.
CIT Sabhapokhari Hydropower Share Underwriting
The signing ceremony took place on Wednesday. Shobha Shrestha Subedi, Acting Executive Director of CIT, and Shreeram Devkota, Managing Director of Sabhapokhari Hydropower, signed the agreement. This partnership will boost investor confidence and promote financial support for Nepal’s hydropower sector.
Share Issuance Details
Sabhapokhari Hydropower plans to issue 1,075,000 shares. Each share is valued at NPR 100. The total share issuance amounts to NPR 107.5 million. CIT will underwrite the entire share issuance, ensuring financial stability.
This agreement assures investors. CIT’s involvement guarantees the availability of funds, making the share issuance process more reliable. As a result, more individuals and institutions may be encouraged to invest in Nepal’s hydropower industry.
Significance of the Agreement
The hydropower sector plays a crucial role in Nepal’s economy. Reliable financial backing is essential for the success of such projects. With CIT underwriting these shares, Sabhapokhari Hydropower can focus on project development without financial concerns.
Moreover, the agreement strengthens trust among potential investors. Institutional support from CIT enhances credibility, ensuring smooth share issuance. This step aligns with Nepal’s goal of expanding hydropower capacity and meeting growing energy demands.
CIT’s Role in Hydropower Investment
Citizen Investment Trust actively supports Nepal’s financial and energy sectors. By underwriting shares, CIT ensures stability and promotes investment opportunities. This agreement reflects its commitment to funding infrastructure projects that benefit the nation.
Investors often look for secure and well-managed opportunities. CIT’s involvement reduces financial risks, making Sabhapokhari Hydropower’s shares more attractive. Consequently, more individuals and institutions may show interest in investing.
Impact on Nepal’s Energy Sector
Nepal’s hydropower industry requires strong financial backing. Agreements like this help accelerate project implementation. Increased investments lead to better infrastructure and improved energy supply.
Furthermore, this partnership between a financial institution and a hydropower company highlights the importance of collaboration. Such initiatives contribute to national economic growth and energy security. As Nepal moves toward sustainable energy solutions, institutional investment will remain crucial.
Conclusion
The share underwriting agreement between CIT and Sabhapokhari Hydropower marks a significant milestone. This deal ensures financial security for the project and strengthens investor confidence.
With CIT backing the share issuance, the hydropower project moves forward without financial hurdles. As a result, Nepal’s energy sector benefits from increased stability and growth. Investors seeking reliable opportunities in hydropower development can explore this share issuance.
Overall, this agreement demonstrates the power of collaboration in infrastructure financing. As Nepal continues its hydropower expansion, such partnerships will play a key role in shaping the country’s energy future.
For more: CIT Sabhapokhari Hydropower Share Underwriting
