This partnership will not only mobilize private financing but also set a benchmark for future green initiatives in the region.
KATHMANDU, DECEMBER 31
UNDP Nepal and NMB Bank have signed a Memorandum of Understanding (MoU) to advance sustainable financing, marking a significant milestone in Nepal's development journey.
This partnership aims to create an enabling environment for the private sector to issue thematic bonds, a move that highlights UNDP's commitment to fostering innovative financial mechanisms to address climate challenges and promote economic resilience, as per the press release issued by the UNDP.
The collaboration comes at a critical time as Nepal prepares for its graduation from the Least Developed Country (LDC) status in 2026.
"This partnership symbolizes our shared commitment to advancing sustainable financing solutions that drive climate action and economic resilience," stated Kyoko Yokosuka, Resident Representative of UNDP Nepal. She further emphasized, "In light of Nepal's significant financing gap to meet the 2030 targets, this partnership
marks a major milestone, helping to mobilize private financing in support of the sustainable development agenda."
The MoU also establishes a mutual learning platform between UNDP Nepal and NMB Bank, enabling both parties to exchange knowledge and expertise crucial for successfully facilitating the issuance of thematic bonds. This partnership is expected to strengthen Nepal's green finance framework and set a benchmark for future green initiatives within the country and the broader region, the release further states.
Sunil KC, Chief Executive Officer of NMB Bank, highlighted the transformative potential of the partnership. "This partnership represents a significant step toward transforming Nepal's financial landscape. The thematic bond will mobilize much-needed green investments, positioning Nepal as a leader in sustainable financing in the region," he said.
This collaboration underscores the vital role of public-private partnerships in achieving Nepal's Sustainable Development Goals (SDGs) and aligns with the global commitment to the Paris Agreement, the press release added.
