Nabil Bank Limited is preparing to issue a debenture dubbed the “7-year, 8% Nabil Debenture 2085.” On Jestha 11, 2078 BS, the Securities Board of Nepal granted the bank authorisation for the issuing of debentures.
The bank will now float a 30,00,000 unit debenture after receiving permission from SEBON.
Each unit of debenture has a par value of Rs 1,000. As a result, the total debenture issue value is Rs 3 Arba. The bank will sell 18 lakh units of debentures worth Rs. 1.80 Arba through private placement out of the entire offering.
Similarly, anyone can apply for the remaining 12 lakh units, which are worth Rs. 1.20 Arba. Mutual funds will receive 5% of the 12 lakh units available in the public offering, or 60,000 units.
The debenture will pay 8% interest on a semiannual basis. The issue will mature in 2085 BS due to the 7-year maturity period.
Himalayan Capital Limited is the debenture’s issuer and sales manager.
With the current financial market’s low interest rates, the debenture issue is likely to draw attention. Because the interest rate on this debenture is higher than the fixed deposit rate, investors may want to consider acquiring it as a long-term investment option.