Banking News – NMB Bank Limited has led the financial management of the 440 MW Tila-1 Hydropower Project in Kalikot district, serving as the lead investor for the project being developed by S.C. Power Company Pvt. Ltd.

The project, located on the Tila River in Kalikot, has an estimated total cost of Rs 59.4 arab, of which Rs 44.55 arab will be financed through bank loans.

Under the financing arrangement, NMB Bank is the lead bank, while Global IME Bank, Himalayan Bank and Prabhu Bank will serve as co-lead banks. Other banks and financial institutions will also participate in the financing.

S.C. Power Company Pvt. Ltd. is led by Chairman Susan Karmacharya and his team. According to the project’s generation licence, the Tila-1 Hydropower Project has an installed capacity of 440 MW. Under the Power Purchase Agreement (PPA), the project is required to begin commercial operation by Poush 15, 2087 BS (December 31, 2030).

The financing agreement was signed by NMB Bank Assistant General Manager Dinesh Dulal on behalf of the bank and Chairman Susan Karmacharya on behalf of S.C. Power Company.

The project, being developed under private-sector investment and leadership, is described as the largest project so far in terms of generation capacity under private-sector investment and leadership. Following completion, the project is expected to generate approximately Rs 11.4 arab in revenue in its first year of operation.

NMB Bank has stated that 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 Guidelines issued by Nepal Rastra Bank. The bank evaluates the environmental and social aspects of investments as part of its financing process.

As part of adopting international best practices, the environmental and social aspects of the Tila-1 project were also studied and assessed using the Initial Environmental, Social and Governance (ESG) Assessment Tool developed by the Hydropower Sustainability Alliance (HSA).

NMB Bank has so far invested in more than 50 hydropower projects across Nepal.

Currently, NMB Bank operates 197 branches, 176 ATMs and 9 extension counters nationwide, providing banking services to customers across the country.