KATHMANDU: The government has authorized Nepal Electricity Authority (NEA) to issue energy bonds worth Rs 20 billion.

The cabinet approved a phased issuance plan during its Thursday meeting.

This will be NEA’s first bond issuance, marking a shift from its usual borrowing from domestic and foreign donors and banks.

The new bond is set to be among the largest in the national market, following a previous Rs 20 billion development bond by Nepal Rastra Bank.

NEA officials have stated that the funds will be allocated for capital expenditure on energy projects, including the 1,061 MW Upper Arun, 210 MW Chainpur Seti, 18 MW Modi, and 99.5 MW Upper Tamakoshi hydropower projects.

Upper Arun and Chainpur Seti are in pre-construction stages, while Modi and Upper Tamakoshi are under construction.