Nepal Launches Historic Green Bond with $60 Million Investment to Propel Sustainable Growth

In a landmark development for Nepal’s financial sector and sustainable future, NMB Bank has launched the country’s first-ever green bond, backed by a $60 million investment led by the International Finance Corporation (IFC), British International Investment (BII), and MetLife. This pioneering transaction is expected to accelerate Nepal’s green transition, create approximately 8,000 jobs over the next five years, and set a crucial precedent for future capital market issuances.

The green bond marks several firsts for Nepal. It is not only the nation’s first thematic bond but also the first private placement of a local issuer’s bond by international investors. The issuance is the result of strategic collaboration between IFC and the Government of Nepal, focused on advancing capital market reforms and promoting sustainable private sector investment.

This initiative will channel funds into small and medium-sized enterprises engaged in sustainable activities, including the promotion of electric vehicles and solar energy projects. These sectors have been prioritized by Nepal’s government as key pillars of the country’s clean energy transition.

Manoj Kumar Goyal, Chairperson of NMB Bank, described the issuance as a transformative moment for Nepal’s financial landscape, highlighting the nation’s ability to lead by example in mobilizing global capital for climate finance. Riccardo Puliti, IFC’s Regional Vice President for Asia and the Pacific, emphasized that the transaction represents IFC’s largest local currency investment in Nepal to date. He noted that by financing sustainable projects, the initiative aims to generate jobs, stimulate economic growth, and strengthen Nepal’s resilience.

Leslie Maasdorp, Chief Executive Officer at British International Investment, underscored the significance of the investment, describing it as a benchmark for future international investments into Nepal. He emphasized that through BII’s first green bond investment in South Asia, they are delivering on their promise to allocate a substantial portion of their resources toward climate finance.

Baroness Chapman of Darlington, Minister of State for International Development, Latin America, and the Caribbean, praised the collaboration, stating that it exemplifies a modern approach to international development by focusing on job creation, leveraging private sector partnerships, and maximizing the impact of development finance.

Adding to the momentum, Nirmal Kajee Shrestha, General Manager of MetLife Nepal, said that MetLife’s participation reflects its global commitment to fostering sustainable development and building a more confident future. He reiterated that the initiative not only supports Nepal’s economic growth but also strengthens environmental resilience.

This groundbreaking transaction is further notable as IFC’s first-ever global local currency debt syndication and the first investment in Nepal’s financial sector utilizing the IDA Private Sector Window for Local Currency Financing.

The launch of Nepal’s first green bond signals a significant shift in the country’s approach to sustainable finance. It also strengthens Nepal’s profile in the global capital markets, positioning it as a forward-looking economy ready to embrace green growth and responsible investment.

With the successful issuance of this green bond, Nepal sets a new standard for innovative financial solutions in the region, paving the way for expanded international engagement and accelerated progress toward a greener and more inclusive economy.

About the Partners

• IFC: A member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.

• NMB Bank: One of Nepal’s leading commercial banks, known for sustainable banking practices and innovation, and the first Nepali bank awarded “Bank of the Year – Asia 2021” by The Banker magazine.

• British International Investment: The UK’s development finance institution, committed to climate finance and promoting inclusive economic growth.

• MetLife: A global leader in insurance and financial services, operating in more than 40 markets including Nepal, where it offers life and health insurance and employee benefits.