November 29, 2021 | Investopaper
Debentures are securities issued on the condition of paying principal and interest at the prescribed rate and time. Its face value is generally Rs. 1000 in Nepal. The debenture holders (investors) receive interest on their investment at a fixed rate annually or semi-annually. The relationship between the debenture holder and the company is like that of a lender and a debtor. If the company is unable to pay the interest at the specified rate and time, the debenture holders can take action to send the company to liquidation.
Debentures are relatively low-risk investment vehicles that provide a good return to those investors more focused on safety. From the point of view of investors, the debentures can be a good place to park the money for medium to long periods of time. A portfolio of stocks mixed with debentures can balance the risk and return of that portfolio. So, if you are a long-term investor seeking safety as well as a good return on your portfolio, then including some portion of your investment amount on the debentures can be a wise investing strategy.
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The table below presents the list of debentures that provide highest interest rate. These debentures are traded on the Nepal Stock Exchange (NEPSE).
Top 5 Debenture/Bond With Highest Interest Rate
|S.N.||Debenture||Issuing Company||Interest Rate (%)||Maturity Year (B.S)|
|1||ICFCD83||ICFC Finance Limited||12||2083|
|2||GWFD83||Goodwill Finance Limited||12||2083|
|3||NICAD8283||NIC Asia Bank Limited||11||2083|
|4||SBLD2082||Siddhartha Bank Limited||10.5||2082|
|5||NIBD2082||Nepal Investment Bank Limited||10.5||2082|
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