The Central Bank has approved the participation of the Hydroelectricity Investment and Development Company (HIDCL) in consortium financing.

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The bank has enabled Investment and Development Company Limited (HIDCL) to in consortium financing.

A consortium is a group of lending institutions that together to jointly finance a single borrower in the financial industry. The size of the project at hand may necessitate the formation of a consortium since it is simply too vast or dangerous for any single lender to take on.

The NRB’s voted January 17 to identify HIDCL as a financial institution for the purposes of implementing Section 3 of the Banks and Financial Institutions Debt Recovery Act, 2058 (with amendments) (d). As a result, the corporation is now permitted to in consortium financing and is subject to limited regulation.

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