NMB Bank Secures Major Funding and Advisory Partnerships for Solar and Hydropower Projects

NMB Bank Limited has taken significant steps towards bolstering Nepal’s renewable energy sector, signing two key agreements aimed at supporting solar energy and hydropower clients. These moves align with the bank’s strategic goal to become the most sustainable financial institution in Nepal.

On September 23, 2024, NMB Bank signed a Letter of Interest for US$ 20 million with the Dutch Fund for Climate and Development (DFCD). This funding will include technical assistance for the development and financing of utility-scale solar energy and agriculture projects in Nepal. This partnership is poised to enhance NMB Bank’s ability to support its clients in the solar sector, especially in light of Nepal Electricity Authority’s new tender for up to 800 MW of grid-connected solar projects across the country.

In addition, NMB Bank has entered into an agreement with FMO, the Dutch Entrepreneurial Development Bank, to secure technical advisory support for assessing the sustainability of its hydropower projects. The initial sustainability assessments will be conducted by the Hydropower Sustainability Alliance, an international body dedicated to setting sustainability standards. This agreement reinforces NMB’s commitment to incorporating environmental and social sustainability considerations from the early stages of project development.

The bank aims to achieve Hydropower Sustainability Standard certification for its hydropower projects, ensuring these developments deliver tangible benefits to local communities and environments. This initiative highlights NMB Bank’s focus on responsible banking, integrating global best practices into Nepal’s growing energy sector.

NMB Bank believes these initiatives will position Nepal as a leader in environmentally and socially resilient energy projects, attracting international investors and promoting sustainable development in the country’s renewable energy sector.