SEBON Approves First-Ever Green Bond Issuance in Nepal Worth Rs. 5 Billion

In a landmark move towards promoting sustainable finance, the Securities Board of Nepal (SEBON) has granted approval to a listed company for the issuance of a Green Bond amounting to Rs. 5 billion. The bond, with a maturity period of seven years, marks Nepal’s first official foray into green finance through the capital market.

The proceeds from this Green Bond will be strictly utilized for environmentally friendly and sustainable development projects. The approval comes under the provisions outlined in the Securities Registration and Issuance Regulations, 2073. This initiative aims to support national and global efforts to mitigate the adverse effects of climate change while fostering green economic growth.

In alignment with international standards, the use of the proceeds will comply with the Nepal Green Finance Taxonomy 2024, issued by the Nepal Rastra Bank, as well as the Green Bond Principles (GBP) established by the International Capital Market Association (ICMA). These guidelines ensure that the funds are directed towards eligible green projects and are transparently monitored and reported.

This milestone reflects a growing global trend of leveraging capital markets to finance the green economy. SEBON's approval of Nepal’s first Green Bond is a significant step in aligning the country's financial sector with climate-resilient and sustainable development goals.

Experts believe this development enhances the role of Nepal’s capital market, positioning it as a critical player in achieving the government's time-bound environmental commitments, including Net Zero Emissions and the Sustainable Development Goals (SDGs).

The approval is expected to encourage further green financing initiatives and inspire more institutions to adopt sustainable investment practices in the years ahead.