British International Investment, the UK’s development finance institution and impact investor, has joined IFC and MetLife to announce a landmark investment of $60 million in the country’s first-ever local currency green bond issuance by NMB Bank.

This pioneering collaboration will support small and medium enterprises involved in climate financing projects, create jobs and accelerate the country’s energy transition to support greenhouse gas emission reduction.

The investment marks two firsts in the history of the country’s financial sector: the first thematic bond issuance in Nepal’s capital markets, and the first private placement of a local issuer’s bond by international investors. This could pave the way for future issuances.

The funding will back clean initiatives benefiting from supportive government policies, for instance to encourage the adoption of electric vehicles and harnessing Nepal’s potential to develop solar energy.

“The issuance of the first-ever Green Bond in Nepal, supported by our partners IFC, BII, and MetLife, marks a transformative shift in Nepal’s financial landscape, demonstrating that our nation can lead by example in climate finance, channeling global capital towards a greener and more resilient future.” said Mr. Manoj Kumar Goyal, Chairperson, NMB Bank.

“We are delighted to support our long-term partners NMB Bank and IFC in this landmark investment, joined by MetLife. This is a significant deal for Nepal and provides the essential benchmark for mobilizing further international investment into the country. Through our first green bond investment for BII in South Asia, we are not only delivering our promise to invest at least 30 per cent of our total new commitment to climate finance, but also unlocking the potential of Nepal,” said Leslie Maasdorp, Chief Executive Officer at British International Investment.

Baroness Chapman of Darlington, Minister of State for International Development, Latin America and the Caribbean said.

Modernising our approach to international development means focusing on jobs, working with the private sector, and having the greatest possible impact with our money. Through British International Investment, this is a great example of that approach. It will support Nepal’s move to clean energy, as well as thousands of jobs, and draws on the UK’s financial expertise “IFC is proud to support NMB Bank’s inaugural Green Bond. The transaction marks the largest IFC anchored local currency investment in Nepal’s financial sector and highlights our commitment to deepening domestic capital markets and expanding access to innovative long term financing solutions for private companies in emerging and developing economies,” said Mr. Riccardo Puliti, Regional Vice President, IFC, Asia and the Pacific. “By financing sustainable projects, the investment will create more jobs, drive long-term inclusive growth and help build a more resilient economy,” he added.

“MetLife is honoured to collaborate with IFC, BII and NMB Bank in this groundbreaking green bond initiative for Nepal,” said Nirmal Kajee Shrestha, General Manager, MetLife Nepal. “Our investment underscores our commitment to fostering sustainable development and clean energy solutions in Nepal. This initiative not only aligns with our global vision of building a more confident future but also supports the creation of thousands of quality jobs, promoting economic growth and environmental resilience in the country.”

Source: BII