First Public Green Bond issued in Nepal with support from South Korea

Kathmandu, June 10: For the first time, a Public Green Bond has been issued in the country with support from the government of South Korea.     

At a programme organized in the capital city on Tuesday, the stakeholders shared that approval from the regulatory bodies was taken to issue the Public Green Bond for Nepal Infrastructure Bank (NIFRA) with the financial support from Global Green Growth Institute and Korea International Cooperation Agency (KOICA).     

The NIFRA Green Energy Bond 2088-89 of Rs 5 billion (USD 36 million) is issued for the period of seven years with the commitment to provide six percent annual interest rate.     

The amount to be received from the bond issuance will be prioritized for renewable energy sector and this is expected to play crucial role in clean and green infrastructure investment in Nepal.     

On the occasion, Minister for Forest and Environment Ain Bahadur Shahi Thakuri termed this move as a cornerstone in Nepal's journey to economic development.     

He said the green finance mobilization would open up new avenues for inclusive economic growth and international cooperation.     

Likewise, South Korean Ambassador to Nepal Park Tae-Young said that the Green Bond would help Nepal lure more investment and obtain sustainable and inclusive economic growth.     

The South Korean Ambassador viewed that the issuance of Green Bond has prepared a basis for strengthening institutional and technical capacity.(RSS)