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Landmark investment to create 8,000 jobs, boost clean energy, and set precedent for sustainable finance in Nepal
Kathmandu - In a historic move for Nepal’s financial sector, NMB Bank has successfully issued the country’s first-ever green bond, securing a $60 million investment from three major international partners — the International Finance Corporation (IFC), British International Investment (BII), and MetLife.
This pioneering green bond aims to finance environmentally sustainable projects across Nepal, including the expansion of solar energy initiatives and the adoption of electric vehicles (EVs). The investment is expected to support the growth of small and medium enterprises (SMEs) involved in green sectors and generate approximately 8,000 jobs over the next five years.
The issuance marks several firsts for Nepal: it is not only the first thematic bond issued in the country but also the first instance of a private placement of a local issuer’s bond directly to international investors. The collaboration was made possible through strategic partnerships between IFC and the Government of Nepal, promoting policy reforms that strengthen the country's capital markets.
Manoj Kumar Goyal, Chairperson of NMB Bank, said, "This green bond issuance demonstrates Nepal’s readiness to lead in climate finance and build a greener, more resilient economy. We are proud to partner with IFC, BII, and MetLife to pave the way for future sustainable investments."
Riccardo Puliti, IFC Regional Vice President for Asia and the Pacific, emphasized the significance of the move, noting, "This transaction marks IFC’s largest local currency investment in Nepal and showcases our commitment to mobilizing global capital for sustainable private sector growth."
Similarly, Leslie Maasdorp, CEO of British International Investment, said, "This is our first green bond investment in South Asia. It creates a vital benchmark for attracting more international climate-focused investments into Nepal."
UK Minister for International Development, Baroness Chapman of Darlington, also welcomed the development, stating, "This investment reflects a modern approach to development—leveraging private sector capital to create jobs, promote clean energy, and maximize impact."
Nirmal Kajee Shrestha, General Manager of MetLife Nepal, added, "Our investment underlines MetLife’s commitment to supporting sustainable growth and economic resilience in Nepal."
The $60 million green bond is also a milestone for IFC, representing its first global local currency debt syndication and the first Nepali transaction supported by the IDA Private Sector Window for Local Currency Financing.
As Nepal strives toward a greener future, this groundbreaking deal sets a powerful precedent for the country's capital markets and reinforces the growing role of sustainable finance in driving economic development.
