NMB Bank signs agreement with AEPC/CREF for loan loss guarantee 

KATHMANDU: NMB Bank has signed an agreement with Alternative Energy Promotion Centre (AEPC)/Central Renewable Energy Fund (CREF) for a loan loss guarantee under Sustainable Energy Challenge Fund for financing in the renewable energy sector in Madhes, Lumbini and Karnali provinces. The fund is established with the support of the British government-funded 'Nepal Renewable Energy Programme'. The arrangement is expected to scale up renewable energy financing in the country with the bank able to secure 20% of the losses with the guarantee support. Sustainable banking forms the cornerstone of NMB Bank’s vision for growth and prosperity in the nation with a focus on the real economy segments of SME, MSME, agriculture, infrastructure and energy. Moreover, the bank supports the initiative of the Government of Nepal (GoN) to transform the country's renewable energy infrastructure and supply system in a sustainable manner, in an effort to reduce the reliance of the country on electricity and fossil fuel imports. The bank has also developed its green financing framework, and environmental and social risk management system incorporating IFC performance standards, further strengthening its claim as the leading bank in sustainable banking. NMB has been Handling Bank of CREF since January 2018. “NMB is the leading bank of Nepal for financing in the renewable energy sector. The partnership will provide much-needed support for scaling renewable energy financing in the country. It will secure a part of the bank’s default and encourage NMB to finance business institutions for energy production and for energy access to the last mile population while also mainstreaming the renewable energy sector. This will also be another stepping stone in the growth of the green lending portfolio of the bank.” said Sunil KC, Chief Executive Officer, NMB Bank. ‘The Banker Magazine’ of The Financial Times, London, has awarded NMB Bank with the prestigious Bank of the Year Asia 2021. The bank has also been awarded Bank of the Year in 2017, 2018, 2020 and 2021. NMB Bank is currently providing its services through 201 branches, 138 ATMs and 11 extension counters. READ ALSO:

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