NMB Bank, AEPC ink deal on renewable energy

KATHMANDU, JUNE 2 : NMB Bank Limited has today signed an agreement with the Alternative Energy Promotion Centre (AEPC)/Central Renewable Energy Fund (CREF) for a Loan Loss Guarantee under the Sustainable Energy Challenge Fund for financing in the Renewable Energy Sector in Madhesh, Lumbini and Karnali Provinces. The fund is established with the support of the British Government-funded Nepal Renewable Energy Program. The arrangement is expected to scale up renewable energy financing in the country with the bank able to secure 20% of the losses with the guarantee support.

"The partnership will provide the much-needed support for scaling renewable energy financing in the country. It will secure a part of the bank’s default and encourage NMB to finance business institutions for energy production and for energy access to the last mile population while also mainstreaming the renewable energy sector. This will also be another stepping stone in the growth of the green lending portfolio of the bank.” said Sunil KC, Chief Executive Officer, NMB Bank.

"Sustainable Banking forms the cornerstone of NMB Bank’s vision for growth and prosperity in the nation with a focus on the real economy segments of SME, MSME, Agriculture, Infrastructure, and Energy," claims the bank, adding, "Furthermore, the bank supports the initiative of the Government of Nepal (GoN) to transform Nepal’s Renewable Energy infrastructure and supply system in a sustainable manner, in an effort to reduce the reliance of the country on electricity and fossil fuel imports." The bank has also developed its Green Financing Framework, and Environmental and Social Risk Management System incorporating IFC Performance Standards, further strengthening its claim as the leading bank in Sustainable Banking.