NMB Bank Limited signed two significant agreements on Monday, September 23, in line with its strategic aspiration to become the most sustainable bank in Nepal.
The first is a Letter of Interest for $20 million with the Dutch Fund for Climate and Development (DFCD) including technical assistance for developing and financing sustainable utility-scale solar and agriculture projects and Nepal, the bank said in a statement. The second is an agreement with FMO, the Dutch Entrepreneurial Development Bank, for technical assistance to conduct initial hydropower sustainability assessment by the Hydropower Sustainability Alliance (HSA), an international standard-setting body.
NMB Bank expressed that in the context of Nepal Electricity Authority’s new tender for developing up to 800 MW of grid-connected solar power projects across Nepal, the Bank aims
to support its Solar Project clients not only financially but also through international technical advisory and sustainable implementation of their projects in the solar and agriculture sector.
Likewise, as part of its Responsible Banking intent, the bank, by implementing internationally recognized independent sustainability assessments conducted by HSA for its financed hydropower projects, intends to integrate environmental and social
sustainability considerations from the initial phase of projects’ due diligence.
The bank, in the near future, aims to obtain the Hydropower Sustainability Standard certification for its financed
hydropower projects, thereby ensuring that the projects deliver net benefits to the local communities and environments they engage with.
“NMB strongly believes that both these initiatives will establish the Nepalese energy sector as environmentally and socially resilient, positioning it as a business opportunity for international investors and attracting global investments to Nepal,” reads the statement.
