NMB Bank executes Financial Closure of Kabeli – 3

KATHMANDU, MAY 24: NMB Bank Limited has successfully executed the Financial Closure of the Kabeli – 3 Hydroelectric Project having an installed capacity of 21.93 MW. The project is located at the Sirijangha Rural Municipality in the Taplejung district. The Financial Closure Agreement of the project was signed on Monday (May 23) in the capital with leading financing  NMB Bank Limited and Century Commercial Bank Limited as Member Bank.

The Nepal Electricity Authority (NEA) has already facilitated for the construction of the project by signing a Power Purchase agreement (PPA) with the company. The total estimated cost of the project stands at Rs 4,285 Million. Out of the total estimated cost, Rs 3,213 Million shall be financed by a consortium of banks for the development of the project. As NMB Bank heads the signing agreement as a lead facilitator of the debt package in hydropower project financing, it now boasts a total of 43 projects in its hydro portfolio.

NMB Bank Ltd. has already adopted the Environmental and Social Policy and started implementing an Environmental and Social Management System within its business portfolio as directed by Nepal Rastra Bank guidelines on the Environmental and Social Risk Management. In addition, it is said to be committed to applying international good practices such as IFC performance standards in project financing including hydropower sectors.