Nepal Launches Landmark Green Bond Worth NPR 5 Billion to Propel Sustainable Development
11th June 2025, Kathmandu
In a historic move towards sustainable financing and climate-resilient development, Nepal has officially launched its first-ever Green Bond today. Valued at NPR 5 billion (approximately USD 36 million), the bond, titled “Green Energy Bond 2088–89,” is being issued by Nepal Infrastructure Bank (NIFRA).
Nepal Landmark Green Bond Worth
This groundbreaking initiative is a collaborative effort with the Global Green Growth Institute (GGGI) and the Korea International Cooperation Agency (KOICA), working in conjunction with Nepal Rastra Bank and other regulatory bodies.
Green Bonds are specialized financial instruments designed to raise capital exclusively for environmentally beneficial projects. In Nepal’s context, the bond will strategically channel investments into renewable energy and clean infrastructure, accelerating the nation’s transition to a greener economy.
Key Features of Nepal’s Inaugural Green Bond:
Issuer: Nepal Infrastructure Bank (NIFRA)
Total Value: NPR 5 Billion (USD 36 Million)
Duration: 7 Years
Interest Rate: 6% per annum
Purpose: To fund clean energy and green infrastructure projects
This landmark bond issuance is set to attract crucial green financing, foster institutional investment, and support inclusive economic growth, all aligned with Nepal’s national climate objectives.
Government and Diplomatic Endorsements
During the launch event, Minister for Forests and Environment, Ain Bahadur Shahi Thakuri, lauded the Green Bond as a significant milestone in Nepal’s journey towards sustainable development and climate adaptation. He reiterated the government’s unwavering commitment to environmental protection and emphasized the bond’s pivotal role in achieving green infrastructure goals.
South Korean Ambassador to Nepal, Park Tae-Young, expressed robust support for Nepal’s green transition, highlighting that the Green Bond would not only draw international investment but also bolster institutional and technical capacities essential for long-term growth.
Mohan Khong, KOICA Nepal Country Director, hailed the initiative as a financial innovation that seamlessly integrates economic progress with environmental sustainability. He underscored the critical need for continued international cooperation in fostering green and inclusive development.
GGGI Country Representative, Laura Jalazoqui, shared her enthusiasm for the multi-stakeholder collaboration that brought this bond to fruition. She noted that this step would significantly contribute to addressing climate change while simultaneously promoting eco-friendly partnerships across Nepal.
Ushering in a New Era for Green Finance
The introduction of this Green Bond marks a pivotal evolution in Nepal’s financial landscape, paving the way for sustainable financing mechanisms that resonate with global climate action agendas. By prioritizing clean energy projects, the bond positions Nepal as a regional exemplar, demonstrating how developing economies can innovate financially to champion the green transition.
The launch event drew the attendance of prominent stakeholders, including Prof. Dr. RP Bichha of the National Planning Commission, as well as various government officials, regulators, private sector leaders, and international development partners.
For more: Nepal Landmark Green Bond Worth
