NEA Secures ‘Double A Plus’ Rating for Third Consecutive Year

The Nepal Electricity Authority (NEA) has secured a ‘Double A Plus’ rating for the third consecutive year, reaffirming its strong financial standing.  

ICRA Nepal assigned NEA an issuer rating of [ICRANP-IR] AA+ after evaluating its financial health, assets, risk factors, management efficiency, and operational effectiveness, NEA said in a statement.  

A ‘Double A Plus’ rating signifies a high capacity to meet financial obligations on time, with minimal credit risk.  

NEA Managing Director Kulman Ghising stated that maintaining this rating for three consecutive years highlights the authority’s strong financial position and debt repayment capability.  

“NEA has completed the rating process, a key requirement for issuing public shares,” Ghising said. “Once government approval is obtained, we will proceed with the share issuance. The funds raised will be invested in large-scale hydropower projects.”  

The authority has proposed issuing primary shares to the public at a premium price of approximately Rs 300 per unit. NEA’s current paid-up capital stands at around Rs 300 billion, with plans to issue up to 20% of that amount.  

NEA also intends to utilize profits and capital from the share issuance to strengthen power generation, transmission, and distribution infrastructure, ensuring a more reliable electricity supply.  

According to the statement, NEA’s annual earnings exceed Rs 116 billion, while its total assets are valued at over Rs 700 billion.  

The authority has signed long-term Power Purchase Agreements (PPAs) for nearly 11,000 MW of electricity with domestic and foreign hydropower investors. “The rating results confirm NEA’s strong financial capacity to meet payment obligations, minimizing investment risks for these projects,” the statement added.