Kathmandu- NMB Bank Limited has successfully completed the financial closure of the 65 MW Dudh Khola Hydropower Project in Manang District under a consortium financing arrangement.
The project is being developed by Dudh Khola Hydro Power Company Pvt. Ltd., with Mountain Energy Nepal Ltd. and the group led by Sita Ram Timilsina as major investors.
Under the consortium arrangement, NMB Bank Limited is serving as the Lead Bank, while Sanima Bank Limited is the Co-Lead Bank. The total estimated cost of the project is NPR 12.90 billion, of which NPR 9.67 billion will be financed through bank loans.
With this project, NMB Bank’s investment portfolio has expanded to more than 50 hydropower projects across Nepal.
The facility agreement was signed by Dinesh Dulal, Assistant General Manager of NMB Bank, and Arun Kumar K.C., Chairman of Dudh Khola Hydro Power Company Pvt. Ltd.
In line with Nepal Rastra Bank’s Environmental and Social Risk Management (ESRM) Guidelines, 2022, NMB Bank has incorporated environmental and social risk assessment into its investment process. The project’s environmental, social and governance (ESG) aspects were evaluated using the Hydroselect Tool, an ESG screening framework developed by the Hydropower Sustainability Alliance (HSA).
NMB Bank said it continues to promote green and sustainable financing while providing financial services through its 198 branches across Nepal.
