NMB Bank bringing in funding and technical advisory for Solar Energy and Hydropower clients

KATHMANDU: NMB Bank Limited, in line with its strategic aspiration to become the most sustainable bank in Nepal, has signed two significant agreements on September 23, 2024.

The first is a Letter of Interest for US$ 20 million with the Dutch Fund for Climate and Development (DFCD) including technical assistance for Developing and Financing Sustainable Utility-Scale Solar and Agriculture projects and Nepal.

The second is an agreement with FMO, the Dutch Entrepreneurial Development Bank, for technical assistance to conduct initial hydropower sustainability assessment by the Hydropower Sustainability Alliance, an international standard-setting body.

NMB Bank expressed that in the context of Nepal Electricity Authority’s new tender for developing up to 800 MW of grid-connected solar power projects across Nepal, the Bank aims to support its Solar Project clients not only financially but also through international technical advisory and sustainable implementation of their projects in the solar and agriculture sector.

Likewise, as part of its Responsible Banking intent, the bank, by implementing internationally recognized independent sustainability assessments conducted by the Hydropower Sustainability Alliance for its financed hydropower projects, intends to integrate environmental and social sustainability considerations from the initial phase of projects’ due diligence. The bank, in the near future, aims to obtain the Hydropower Sustainability Standard certification for its financed hydropower projects, thereby ensuring that the projects deliver net benefits to the local communities and environments they engage with.

NMB strongly believes that both these initiatives will establish the Nepalese energy sector as environmentally and socially resilient, positioning it as a business opportunity for international investors and attracting global investments to Nepal.