IFC, BII, MetLife to invest $60m in Nepal’s first green bond issuance by NMB Bank
WASHINGTON, DC: International Finance Corporation (IFC), as anchor investor, along with British International Investment (BII) and MetLife, has announced an investment of $60 million in Nepal’s first-ever green bond issuance by NMB Bank. This marks a groundbreaking milestone for sustainable finance in Nepal.
This collaboration will support small and medium enterprises involved in sustainable financing projects, create around 8,000 jobs over the next five years, and help accelerate Nepal’s energy transition. The investment was made possible through cooperation between IFC and the Government of Nepal to enhance the country’s capital markets through strategic policy developments and regulatory reforms. It also marks two firsts in Nepal’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, paving the way for future issuances.
The investment is expected to drive economic growth by supporting initiatives such as the adoption of electric vehicles (EVs) and harnessing Nepal’s potential to develop solar energy, both backed by favourable government policies.
"The issuance of Nepal’s first-ever green bond, 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, channelling global capital towards a greener and more resilient future," said Manoj Kumar Goyal, Chairperson, NMB Bank.
“IFC is proud to support NMB Bank’s inaugural green bond. The transaction marks our largest local currency investment in Nepal, highlights our commitment to strengthening domestic capital markets, and provides innovative long-term financing solutions for private sector growth in emerging markets,” said Riccardo Puliti, Regional Vice President, IFC, Asia and the Pacific. “By financing sustainable projects, we aim to create more jobs, drive economic growth, and help build a more resilient economy,” he added.
The investment marks IFC’s first local currency debt securities syndication globally and is the first transaction in Nepal’s financial sector supported by the IDA Private Sector Window for Local Currency Financing.
“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 an essential benchmark for mobilising 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 Nepal’s potential,” said Leslie Maasdorp, Chief Executive Officer, 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.”
“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.”
