29th April 2025, Kathmandu
In a groundbreaking milestone for sustainable finance in Nepal, IFC, as anchor investor, along with British International Investment (BII) and MetLife, announced an investment of $60 million in the country’s first-ever green bond issuance by NMB Bank.
Nepal’s First Green Bond $60M
This pioneering collaboration will support small and medium enterprises involved in sustainable financing projects, create around 8,000 jobs over the next five years, and help accelerate Nepal’s energy transition. This investment was made possible by the strong collaboration between IFC and the Government of Nepal to enhance the country’s capital markets through strategic policy developments and regulatory reforms. It marks two other firsts in the history of the country’s financial sector: the first thematic bond issuance in Nepal’s capital markets and the first private placement of a local issuer’s bond by international investors, paving the way for future issuances.
The investment is set to drive significant economic growth by backing initiatives like the adoption of Electric Vehicles (EVs) and harnessing Nepal’s potential to develop solar energy, both supported by favorable government policies.
“The issuance of the first-ever Green Bond in Nepal, supported by our partners IFC, BII, and MetLife, marks a transformative shift in Nepal’s financial landscape, demonstrating that our nation can lead by example in climate finance, channeling global capital towards a greener and more resilient future,” said Mr. Manoj Kumar Goyal, Chairperson, NMB Bank.
“IFC is proud to support NMB Bank’s inaugural Green Bond. The transaction marks our largest local currency investment in Nepal, highlights our commitment to strengthening domestic capital markets and providing innovative long-term financing solutions for private sector growth in emerging markets,” said Mr. Riccardo Puliti, Regional Vice President, IFC, Asia and the Pacific. “By financing sustainable projects, we aim to create more jobs, drive economic growth, and help build a more resilient economy,” he added.
This investment marks IFC’s first local currency Debt Securities Syndication globally and is the first transaction in Nepal’s financial sector supported by the IDA Private Sector Window for Local Currency Financing.
“We are delighted to support our long-term partners NMB Bank and IFC in this landmark investment, joined by MetLife. This is a significant deal for Nepal and provides the essential benchmark for mobilizing further international investment into the country. Through our first green bond investment for BII in South Asia, we are not only delivering our promise to invest at least 30 per cent of our total new commitment to climate finance, but also unlocking the potential of Nepal,” said Leslie Maasdorp, Chief Executive Officer at British International Investment.
Baroness Chapman of Darlington, Minister of State for International Development, Latin America and the Caribbean, said, “Modernising our approach to international development means focusing on jobs, working with the private sector, and having the greatest possible impact with our money. Through British International Investment, this is a great example of that approach. It will support Nepal’s move to clean energy, as well as thousands of jobs, and draws on the UK’s financial expertise.”
“MetLife is honored to collaborate with IFC, BII, and NMB Bank in this groundbreaking green bond initiative for Nepal,” said Nirmal Kajee Shrestha, General Manager, MetLife Nepal. “Our investment underscores our commitment to fostering sustainable development and clean energy solutions in Nepal. This initiative not only aligns with our global vision of building a more confident future but also supports the creation of thousands of quality jobs, promoting economic growth and environmental resilience in the country.”
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About NMB Bank
NMB Bank stands as a leading commercial bank in Nepal, distinguished by its extensive nationwide network and digital infrastructure. Committed to sustainable banking practices, innovative solutions, and responsible growth, NMB Bank is a key partner in Nepal’s economic and environmental progress.
NMB Bank has earned numerous national and international recognitions, including multiple “Bank of the Year – Nepal” awards from The Banker, UK. Significantly, it is the first and only bank in Nepal to receive The Banker’s “Bank of the Year – Asia 2021” award. Guided by a strong governance framework and a commitment to creating long-term value, NMB continues to set benchmarks in ethical banking and financial inclusion.
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia, and the Caribbean, BII invests to create productive, sustainable, and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge, which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits, and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe, and the Middle East. For more information, visit www.metlife.com.
About MetLife Nepal
MetLife has been operating in Nepal since 2001 as a branch of American Life Insurance Company, incorporated in the USA, a subsidiary of MetLife, Inc. In Nepal, MetLife provides consumers and businesses with life insurance, accident & health insurance, and employee benefits (group insurance). For more information, visit www.metlife.com.np or call +977-1-5970166.
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