Nepal Infrastructure Bank Limited (NIFRA), with support from the Global Green Growth Institute (GGGI) and the Korea International Cooperation Agency (KOICA), has obtained all regulatory approvals for the country’s first-ever public issuance of Green Bonds. The approvals granted by Nepal Rastra Bank (NRB) and Securities Board of Nepal (SEBON) pave the way for the forthcoming issuance of green bonds, which is expected to proceed following the completion of ongoing procedural requirements, as per the statement issued by NIFRA on May 16.
GGGI provided technical advice and expertise to NIFRA for the development of its Green Bond Framework, which outlines the specific criteria, procedures, and standards that define projects eligible for funding through green bond issuance and how the funds will be managed and reported. This framework aligns with the ICMA Green Bond Principles 2021 (GBP), the EU taxonomy, and the Nepal Green Finance Taxonomy 2024. A second-party opinion from Sustainable Fitch Inc. was obtained, resulting in an excellent rating for the Green Bond Framework.
The approval for the first public issuance of a green bond represents a significant milestone in establishing a robust green finance ecosystem in Nepal. The proceeds from the bonds will be allocated for climate-related initiatives, including renewable energy projects in the country. By facilitating increased financial flows toward sustainable infrastructure projects, the bond aims to promote green development.
“Issuance of Nepal’s first green bond ‘Green Energy Bond 6% – 2088/89’ marks not only the beginning of NIFRA’s green finance journey but also the introduction of an innovative financial instrument for the nation,” the statement quoted Krishna Bahadur Adhikari, Chief Executive Officer of NIFRA as saying. “It sets a precedent for other institutions to follow, creating pathways to mobilise capital at scale for sustainable infrastructure. This has been possible only with NIFRA’s collaboration with GGGI and KOICA, which again is an important milestone in that direction.”
“This achievement represents a significant step forward in Nepal’s efforts to develop a strong green finance ecosystem. The design of NIFRA’s Green Bond Framework is a great example of how GGGI can accelerate the green transition in its member countries by leveraging international partnerships and our in-house technical expertise,” Laura Jalasjoki, GGGI Country Representative for Nepal and Pakistan stated. “I am confident that Nepal’s green finance market will see significant expansion in the near future.”
This transaction has been enabled under the Memorandum of Understanding between GGGI, KOICA, and NIFRA signed on April 15. Pioneer Law Associates has also provided legal assistance to NIFRA on the proposed issuance.
Established on February 11, 2019, NIFRA was registered as the first national-level infrastructure development bank of the nation, promoted by Government of Nepal together with banks and financial institutions (BFIs), life and non-life Insurance companies, other private sector leading entities, and a team of entrepreneurs.
The Global Green Growth Institute is an intergovernmental organisation based in Seoul, South Korea, and is dedicated to promoting green growth, which integrates economic progress with environmental sustainability.
