Kathmandu – Nepal Infrastructure Bank, commonly known as NIFRA, is a relatively new entrant in Nepal’s banking sector and is considered the second type of specialized bank after the introduction of neo-banking. According to Krishna Bahadur Adhikari, CEO of NIFRA, the bank’s core objective is to bridge the existing gap between commercial banks and infrastructure development in Nepal.

Speaking at the first session of the Third National Banking Discourse 2025, titled “Challenges in Credit Expansion in Nepal: Targeted Interventions, Sectoral Adaptation, and Emerging Possibilities,” CEO Adhikari explained that while the differences between commercial banks and NIFRA may seem minimal, NIFRA operates under specific directives that permit it to invest in 13 designated infrastructure sectors.

He emphasized that NIFRA is investing in renewable energy, hotels, and hospitals, and collaborates with commercial banks when large-scale financing is required. However, he acknowledged that policy-level barriers have occasionally slowed NIFRA’s initiatives, especially in sectors where commercial banks have been hesitant to invest.

To expand investment avenues, Adhikari stated that supportive policies and regulations are crucial. As an example of Public-Private Partnership (PPP) in action, he highlighted a recent project in Dharan, Koshi Province, where NIFRA partnered with the provincial government and the private sector to develop a tourism infrastructure initiative stimulating local economic activity.

He also shared that NIFRA recently issued a Green Bond worth NPR 5 billion. This move, although not mandated by the regulator, reflects NIFRA’s proactive approach to green financing in response to the global climate crisis, which is also affecting Nepal. “This is a step toward aligning with sustainable finance,” Adhikari said, noting that the response from investors exceeded expectations.

NIFRA has developed strategies to promote green investments in tourism and other infrastructure projects. Adhikari also highlighted a key difference between NIFRA and commercial banks: while commercial banks typically accept term deposits for up to five years, NIFRA is structured to handle long-term funding needs.

The recently issued bond has a seven-year maturity, and NIFRA is planning additional long-term bond issuances to support ambitious national infrastructure goals. He referenced Nepal’s Energy Roadmap 2080, which targets the generation of 28,500 MW of electricity by 2035, and emphasized that achieving this requires long-term strategic financing a space where NIFRA aims to play a pivotal role.