NMB Bank signs agreement

KATHMANDU: NMB Bank has signed a loan agreement with Bakas Renewable Energy, a company promoted by forestry and environmental professionals in which Business Oxygen (BO2), Nepal’s first international private equity fund with a climate focus promoted by International Finance Corporation (IFC) of the World Bank Group is making equity investment for developing a biomass pellet project at Ishworpur, Sarlahi District of Province 2.

The project has equity investment of Rs 50 million from BO2 and remaining Rs 50 million from promoting shareholders whilst NMB Bank will be providing debt financing of Rs 160 million under term and working capital loan for production of biomass pellet, as per a media release.

The project has a production capacity of 19,824 metric tonnes a year. Most raw materials for production are sourced from forest floor of Sagarnath Forest Development Project based on pact with Forest Products Development Board.