A recent published white paper from Alternative Energy Promotion Center (AEPC) mentions the need of venture capital/ equity investment to ease the access to finance situation in the small hydro power segment...
This is what is mentioned in the white paper :- "
This is what is mentioned in the white paper :- "
Assistance in
Raising Equity and loans
"Local
community/developer need to be assisted/supported in equity and loan, equity
investment, venture capital investment fund, long term soft loan etc.
Venture Capital system should be established.
A study on how venture capital provision may be introduced in Nepal including
long term soft loan and equity investment."
The white paper mentioned " A study on how venture capital provision may be introduced in Nepal " My recommendation is to cover the following issues in the study
- Quality of deal flow- Not just " Jhola ma Khola"
- Issue involving cost of capital, considering floating interest rate
- Taxation issues, tax incentives
- Lock in period
- Exit options & incentives while exiting for venture capital investors
- Financial instruments that can be used
- Possibilities of patient capital, including first loss option
- Environmental, social and governance risk
Contact me for additional thoughts and comments
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