NMB Bank Leads Rs. 44.55 Billion Financing for 440 MW Tila-1 Hydropower Project

NMB Bank Limited has served as the lead bank in arranging financing for the 440 MW Tila-1 Hydropower Project in Kalikot district, which is being developed by S.C. Power Company Pvt. Ltd.

The project, located along the Tila River in Kalikot, has an estimated total cost of Rs. 59.4 billion. Of the total project cost, bank financing will amount to Rs. 44.55 billion.

NMB Bank is serving as the Lead Bank, while Global IME Bank Limited, Himalayan Bank Limited and Prabhu Bank Limited are participating as Co-Lead Banks. Other banks and financial institutions will participate as member lending institutions.

The financing agreement was signed by Dinesh Dulal, Assistant General Manager of NMB Bank, and Sushant Karmacharya, Chairman of S.C. Power Company.

According to the company, the project has an installed capacity of 440 MW, with commercial operation scheduled to begin by Poush 15, 2087 BS, as stipulated in its Power Purchase Agreement (PPA).

The project is being developed under private-sector investment and leadership and is described as the largest hydropower project in Nepal in terms of installed capacity to date. Following completion, the project is estimated to generate approximately Rs. 11.4 billion in revenue in its first year of operation.

NMB Bank Emphasizes Sustainable Investment
NMB Bank said it has been prioritizing responsible and sustainable investment by implementing environmental and social policies and management systems in line with the Environmental and Social Risk Management (ESRM) Guidelines issued by Nepal Rastra Bank.

As part of its assessment of the project’s environmental and social aspects, the bank also used the Hydroselect Tool, an initial environmental, social and governance screening tool developed by the Hydropower Sustainability Alliance (HSA), in line with international good practices.

NMB Bank has invested in more than 50 hydropower projects to date.

The bank currently provides banking services through 197 branches, 176 ATMs and nine extension counters across Nepal.