NMB Bank Limited has achieved financial closure for the 65 MW Dudh Khola Hydropower Project in Manang under a consortium financing arrangement. The project is being developed by Dudh Khola Hydro Power Company Pvt. Ltd., with Mountain Energy Nepal Ltd. and the group led by Sita Ram Timilsina as major investors.
Under the financing arrangement, NMB Bank is serving as the Lead Bank, while Sanima Bank Limited is the Co-Lead Bank. The project has an estimated total cost of NPR 12.90 billion, of which NPR 9.67 billion will be financed through bank loans.
With the financing of the Dudh Khola project, NMB Bank’s investment portfolio has expanded to more than 50 hydropower projects across Nepal.
The facility agreement was signed by Dinesh Dulal, Assistant General Manager of NMB Bank, on behalf of the bank, and Arun Kumar K.C., Chairman of Dudh Khola Hydro Power Company Pvt. Ltd., on behalf of the project developer.
In accordance with the Environmental and Social Risk Management (ESRM) Guidelines, 2022, issued by Nepal Rastra Bank, NMB Bank incorporates its Environmental and Social Management System (ESMS) to assess environmental and social risks associated with its investments.
For the Dudh Khola Hydropower Project, the bank evaluated environmental, social and governance (ESG) aspects using the Hydroselect Tool, an ESG screening and assessment framework developed by the Hydropower Sustainability Alliance (HSA).
NMB Bank currently operates 198 branches, 176 ATMs and nine extended counters across Nepal.
