NMB Bank signs agreement with Alternative Energy Promotion Centre for loan loss guarantee under sustainable energy challenge fund
NMB Bank Limited has signed an agreement with Alternative Energy Promotion Centre (AEPC)/Central Renewable Energy Fund (CREF) for Loan Loss Guarantee under Sustainable Energy Challenge Fund for financing in Renewable Energy sector in Madhesh, Lumbini and Karnali Provinces. The fund is established with support of 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.
Sustainable Banking forms the cornerstone of NMB Bank’s vision for growth and prosperity in the nation with focus on the real economy segments of SME, MSME, Agriculture, Infrastructure and Energy. 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.
NMB is also the Handling Bank of CREF since January 2018.
“NMB is the leading bank of Nepal for financing in renewable energy sector. The partnership will provide 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 institution 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 green lending portfolio of the bank.” said Sunil KC, Chief Executive Officer, NMB Bank.