The Dutch Fund for Climate and Development (DFCD) origination facility investment committee has approved a proposal to support NMB Bank Ltd in expanding its climate-resilient investments in Nepal.

As a result, SNV intends to sign a EUR 350,000 grant funding agreement with NMB Bank Ltd to support the further development of the investment proposal and a technical assistance package.

The technical assistance package will support the company with identifying suitable pipeline projects, providing de-risking support to private sector companies to achieve bankability, and strengthening NMB’s internal ability to make future climate-resilient investments. 

A particular focus will be out on supporting climate-resilient agriculture projects. It will also include support for sustainable forestry, renewable energy, and clients seeking finance to increase resiliency to climate change. 

This project is expected to achieve Rio-Marker one and two scores. Rio-Marker one for Banking and Financial Services, which seeks to address climate adaptation and Rio-Marker two, for Agriculture for climate resilient agricultural practices. 

The outputs of the project include:

  • Identifying suitable investment opportunities, which include workshops to build awareness of climate change and to reach potential partners.
  • Providing support and assistance to private sector companies to move them from not-yet bankable to a bankable state.
  • De-risking activities include ensuring companies address sustainability targets, ESG, and GESI standards.
  • In-housing climate resilient lending expertise so that lending can be further scaled up.
 

The impact of the originating stage includes:

  • 15,000 people positively impacted, of which 50% are women.
  • Mobilising $20 million of investment into Nepal, with 10 million addressing climate change.
 

About the DFCD

 

The Dutch Fund for Climate and Development is a 160 million Euro fund from The Netherlands Ministry of Foreign Affairs to improve the resiliency of the most vulnerable landscapes, ecosystems, and communities through climate change adaptation. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the programme website.

 

About SNV

 

SNV is a mission-driven global development partner working in more than 20 countries across Africa and Asia. Building on 60 years of experience and grounded in the 2030 Agenda for Sustainable Development, we work on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance. Together with our team of over 1,600 people, our mission is to strengthen capacities and catalyse partnerships that transform the agri-food, energy, and water systems, which enable sustainable and more equitable lives for all.

 

About NMB

 

NMB, founded in 1996, is a leading class-A bank in Nepal. It provides services from its 201 branches, 11 extension counters, and 138 ATMs. NMB serves 1.6 million customers. NMB’s vision is to build communities through responsible banking, preferred by all stakeholders, enabling customers and clients to achieve their financial goals, thus contributing towards a prosperous Nepal.

 

For more information

 

To read the full disclosure document, please click here. For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:

SNV - Dutch Fund for Climate and Development: Mr Alex Downs, adowns@snv.org