NIFRA secures approval for first public issuance of green bond to support sustainable projects

KATHMANDU: Nepal Infrastructure Bank (NIFRA), with support from Global Green Growth Institute (GGGI) and the Korea International Cooperation Agency (KOICA), has obtained all regulatory approvals for the country’s first-ever public issuance of a green bond.  

The approvals granted by Nepal Rastra Bank (NRB) and the Securities Board of Nepal (SEBON) have paved the way for the forthcoming issuance, which is expected to proceed following the completion of ongoing procedural requirements.  

GGGI provided technical advice and expertise to NIFRA for the development of its Green Bond Framework, which defines the criteria, procedures, and standards for projects eligible for funding through the issuance, as well as fund management and reporting. The framework aligns with the ICMA Green Bond Principles 2021 (GBP), the EU taxonomy, and the Nepal Green Finance Taxonomy 2024. A second-party opinion from Sustainable Fitch Inc was obtained, awarding the framework an excellent rating.  

The approval for the first public issuance of a green bond marks a milestone in establishing a robust green finance ecosystem in Nepal. The proceeds will be allocated to climate-related initiatives, including renewable energy projects. By increasing financial flows towards sustainable infrastructure, the bond aims to promote green development.  

Krishna Bahadur Adhikari, Chief Executive Officer of NIFRA, stated, “Issuance of Nepal’s first green bond, 'Green Energy Bond 6% - 2088/89', marks not only the beginning of NIFRA’s green finance journey but also the introduction of an innovative financial instrument for the nation. It sets a precedent for other institutions to follow, creating pathways to mobilise capital at scale for sustainable infrastructure. This has been possible only with NIFRA’s collaboration with GGGI and KOICA, which again is an important milestone in that direction.”  

Laura Jalasjoki, GGGI Country Representative for Nepal and Pakistan, remarked, “This achievement represents a significant step forward in Nepal’s efforts to develop a strong green finance ecosystem. The design of NIFRA’s Green Bond Framework is a great example of how GGGI can accelerate the green transition in its member countries by leveraging international partnerships and our in-house technical expertise. I am confident that Nepal’s green finance market will see significant expansion in the near future.”  

This transaction has been facilitated under the memorandum of understanding (MoU) between GGGI, KOICA, and NIFRA, signed on April 15, 2025. Pioneer Law Associates has also provided legal assistance to NIFRA for the proposed issuance.