Development financier and impact investor Finnfund has announced a 10 million euro (about US$10.5 million) equity investment to boost the expansion of a major fibre network in Nepal.

Finnfund says it has invested in WorldLink Communications, the largest internet service provider (ISP) in Nepal and a pioneering ICT company in the country. Finnfund’s investment will be used to expand the existing WorldLink fibre network and to build WorldLink’s first Tier III data centre. 

Nearly half of the population in Nepal still lacks broadband internet access and there is a notable disparity between urban and rural areas. Finnfund says the world-class data centre will improve Nepal’s connectivity and boost economic growth, pointing out that WorldLink has been working towards bridging the digital divide in Nepal by expanding its services to rural areas of Nepal and to remote villages.

As a Finnish impact investor, the company says it also values the fact that WorldLink uses Nokia’s advanced technology to enhance its internet services.

Worldlink adds that its expansion into the data centre sector will benefit not only its own customers but also  internet service providers, telecoms and both public and private sector organisations.

WorldLink provides employment to over 5,000 people and has 35% broadband market share in Nepal, reaching over 900,000 households. The company currently provides services in 73 of the 77 districts in Nepal.

Finnfund provides businesses operating in Africa, Asia and Latin America with risk capital, long-term investment loans, mezzanine financing and expertise on how to invest in developing markets. It invests only in developing countries as defined by OECD/DAC. Finnfund gets its funding from the State of Finland, from private capital markets and from retained earnings from its investments.