Kathmandu, Nepal, May 16, 2025- 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 Bond. The approvals granted by Nepal Rastra Bank (NRB) and the Securities Board of Nepal (SEBON) pave the way for the forthcoming issuance of green bond, which is expected to proceed following the completion of ongoing procedural requirements.

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.

Krishna Bahadur Adhikari, Chief Executive Officer of NIFRA mentioned “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. It sets a precedent for other institutions to follow, creating pathways to mobilize 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.”

Laura Jalasjoki, GGGI Country Representative for Nepal and Pakistan, mentioned “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. 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, 2025. Pioneer Law Associates has also provided legal assistance to NIFRA on the proposed issuance.

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For more information, visit:  https://gggi.org

GGGI HQ

Romain Brillie

Director, Department of Strategy and Communications
+82 10 9530 0170 | brillie.romain@gggi.org

Na Yoon Kang

Senior Assistant, Communications & Knowledge Sharing Unit
+82 10 9530 0338 | nayoon.kang@gggi.org

NIFRA

Smriti Sharma

Head – Public Sector Engagement and New Initiatives
+977-1-4780203 / 4780818 Ext. 120 | smriti.sharma@nifrabank.com

© Photo Credit – Diwakar Rai, Communications Consultant, Nepal Country Office

About NIFRA

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 Bank received its license from Nepal Rastra Bank on February 11, 2019. The Bank is committed to financing sustainable infrastructure projects in Nepal to support economic growth and environmental stewardship.

About the KOICA-GGGI project

Building Climate Resilience and Reintegrating Economically Displaced Workers through Climate Smart Agriculture in the Terai Flood Plain

The project aims to support widespread adoption of climate-smart agriculture (CSA) interventions to reduce vulnerability and improve food and job security, especially for women, youth and returned migrant workers. The project also advances sustainable finance and green infrastructure development in Nepal, under which GGGI supports NIFRA in the first public issuance of a green bond in Nepal.