First ever Local Currency Energy Bond issued by NMB Bank has been oversubscribed within 4 days of issuance
31 May, 2021
The NMB Energy Bond, a local currency energy bond issue marking the first of its kind issuance in Nepal, has been oversubscribed within 4 days of issuance on Jestha 9, 2077 (23rd May 2021). The Bond with total issuance value of NPR 1.5 Billion carried a yield rate of 4% p.a. with tenure of 15 years.
The oversubscription within a short time frame during current situation of limited mobility was made possible due to the majority of applications being processed via digital mediums. The Energy Bond issuance resulted in early oversubscription with encouraging demand from individual as well as institutional investors.
The NMB Energy Bond issuance and successful full subscription speaks volumes on the reputation of NMB bank as a champion of green financing and sustainable banking practices.
The NMB Energy Bond issuance is in line with the commitment of NMB Bank towards Sustainable Banking contributing for overall development of the real economy and is one of numerous initiatives the bank has undertaken to demonstrate its continued commitment towards responsible banking.
NMB Bank is currently involved in 43 hydropower projects with an overall committed limit towards energy sector of more than 16% of its portfolio outstanding. The proceeds from the bond issued shall be utilized for funding additional hydropower and other renewable energy projects. “The Energy Bond issue is an initiative from the bank to continue its pledge on responsible banking” said Sunil KC, Chief Executive Officer, NMB Bank Limited.
The Bank, serving through its strong network of 181 branches, 9 extension counters and 137 ATMs across the country, was awarded with “Bank of the Year – 2017, Bank of the Year- 2018 and Bank of the Year- 2020” by The Banker, Financial Times, London.