NMB Bond I (IFC-49688)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Nepal
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 9, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
NMB Bank Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Industry and Trade
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 1, 2024

Disclosed by Bank Sep 9, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the IFC, the proposed investment consists of up to US$50 million equivalent in Nepalese Rupees (NPR) in a 5-year, privately placed, green bond (the Green Bond) to be issued by NMB Bank Limited (NMB or the Bank), an existing IFC client, to facilitate its lending program to eligible climate assets (the Project). IFC subscription of the green bond will be up to a maximum of US$40 million and IFC will invite other investors to subscribe to the green bond for an additional minimum amount of US$10 million, with IFC acting as an anchor investor. The proposed Green Bond will be the first by any institution in Nepal. This will also be the first time that foreign investors would be subscribing to a bond issuance by a local issuer. The proposed investment would contribute to developing the long-term (LT) debt capital market, along with climate financing, which are both at nascent stages in Nepal.

The eligible climate assets include 50% EV- retail and distribution and 50% solar- rooftop and utility scale.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The IFC categorized the project risk as FI-2.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the IFC, the proposed investment consists of up to US$50 million equivalent in Nepalese Rupees (NPR) in a 5-year, privately placed, green bond (the Green Bond) to be issued by NMB Bank Limited (NMB or the Bank), an existing IFC client, to facilitate its lending program to eligible climate assets (the Project). IFC subscription of the green bond will be maximum up to US$40 million and IFC will invite other investors to subscribe to the green bond for an additional minimum amount of US$10 million, and IFC will act as an anchor investor.  

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, NMB Bank Limited (NMB) is a private commercial bank in Nepal with headquarters in Kathmandu. Originally established as a ‘C’ class financial institution (Non-bank Finance Companies) in 1996, NMB graduated to an ‘A’ Class financial institution (Commercial Banks) in 2008, the first company in the Nepalese financial sector to successfully achieve such elevation in standing. NMB Bank is listed on the Nepal Stock Exchange. The promoter group owns 51.00% of the bank’s shareholding. The remaining 49.00% shares are held by the public.  


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Financial Intermediary - NMB Bank Limted:

Susheel Kumar Bhujel - Head, International Business & Treasury
Phone: +977 1 4246160
Email: susheel.bhujel@nmb.com.np
Address: Babermahal, Kathmandu, Nepal
Website: www.nmb.com.np 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works