KATHMANDU, Aug. 21 (Xinhua) -- The Nepali government has approved the International Finance Corporation (IFC) and the Asian Development Bank (ADB) to issue Nepali rupee-denominated bonds, a senior official of Nepal's Finance Ministry said on Friday.
Amrit Lamsal, spokesperson for the ministry, told Xinhua that both institutions have been approved to issue bonds worth 200 million U.S. dollars each to raise funds to projects developed by Nepal's private sector.
"They can issue bonds in the international markets over the next 10 years," he said. "The funds will be made available to Nepal's private sector through Nepali banks, based on negotiations between these international agencies and the Nepali private-sector entities involved in developing infrastructure projects."
It has been more than a decade since the ADB and IFC first proposed issuing Nepali currency-denominated bonds in international markets. However, the talks never translated into actual bond issuance.
Nepal faces a significant resource gap in financing major infrastructure projects envisioned in the country's periodic plans and other development goals.
Nepal's Finance Minister Swarnim Wagle said on Thursday that offshore bonds had become a viable source of financing.
"The ADB and IFC can issue the bonds in the international market and enable lending to private companies through our banks. We have tapped this source of financing," he said. ■