NMB Bank executes financial closure of Kabeli-3 hydro project

NL Today

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Kathmandu: NMB Bank has successfully executed the financial closure of the Kabeli-3 Hydroelectric Project having an installed capacity of 21.93 MW.

The project is located at Sirijangha Rural Municipality, Taplejung.

The financial closure agreement of the project has been signed on May 23 with lead financing from NMB Bank and Century Commercial Bank as member banks.

The Nepal Electricity Authority (NEA) has already facilitated the construction of the project by signing Power Purchase Agreement (PPA) with the company. The total estimated cost of the project stands at Rs 4,285 million. Out of the total estimated cost, Rs 3,213 million shall be financed by consortium banks for the development of the project.

As NMB Bank heads the signing agreement as a lead facilitator of debt package in hydropower project financing, it now rests with a total number of 43 projects in its hydro portfolio.

NMB Bank has already adopted Environmental and Social Policy and started implementing an Environmental and Social Management System within its business portfolio as directed by Nepal Rastra Bank guidelines on Environmental and Social Risk Management. In addition, Bank is committed to applying international good practices such as IFC performance standards in project financing including hydropower sectors.