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NMB Bank Leads Financial Closure of 24.8 MW Bajra Madi Hydropower Project
News Article:
NMB Bank Limited has successfully executed the financial closure of the 24.8 MW Bajra Madi Hydropower Project, reinforcing its position as a leading financier in Nepal’s renewable energy sector. The project, promoted by Bajra Energy Ventures Pvt. Ltd., is located in Madi Rural Municipality of Kaski District. The Financial Closure Agreement was officially signed on 9th May 2025, with Agricultural Development Bank Ltd. joining as a consortium member bank.
The Nepal Electricity Authority (NEA) has already laid the groundwork by signing a Power Purchase Agreement (PPA) with the company, facilitating the project's construction. The total estimated cost of the Bajra Madi Hydropower Project stands at NPR 5.35 billion, with NPR 3.745 billion financed by the consortium led by NMB Bank.
In a parallel achievement, Vision Lumbini Urja Co. Ltd., a common investment group of Bajra Energy Ventures, has announced the successful commercial operation of the Seti Nadi Hydroelectric Project, a 25 MW capacity plant located in Annapurna Rural Municipality and Pokhara Metropolitan City. This project began its commercial operation on 12th November 2024, and was financed through a consortium led by NMB Bank, alongside the Employees Provident Fund and Agricultural Development Bank Ltd.
NMB Bank has financed over 50 hydropower projects to date and continues to integrate sustainability at the core of its financing model. The bank has implemented an Environmental and Social Management System (ESMS) in compliance with the Nepal Rastra Bank’s Environmental and Social Risk Management Guidelines, 2022. Furthermore, it is committed to aligning with international good practices, including the IFC Performance Standards, particularly in hydropower project financing.
These achievements highlight NMB Bank’s strategic vision in supporting clean energy infrastructure and promoting environmentally responsible banking practices in Nepal.
