Kamana Sewa Bikas Bank To Close Debenture Issue On Falgun 6

February 18, 2021 | Investopaper

Kamana Sewa Bikas Bank Limited (KBBL) is currently issuing a debenture (10 years, 9% Kamana Sewa Bikas Bank Ltd Debenture, 2087) from Magh 22, 2077 BS. The bank is floating 10 lakh units debenture at a par value of Rs 1000. Hence, the total issue amounts to Rs 1 Arba. The debenture issue was set to open until Magh 26, 2077 BS. However, due to under-subscription until that period, the issue has been extended until Falgun 6, 2077 BS.

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Out of the total issue size, the bank will sell 6 lakh units worth Rs 60 crores through private placement. Likewise, the general public can apply for the remaining 4 lakh units that amount to Rs 40 crores. The mutual funds will receive 5 percent (out of general public’s quota) or 20,000 shares.

The debenture will provide 9 percent interest rate payable semi-annually. It has a maturity period of 10 years. Hence, the bank will refund the principal amount in 2087 BS.

Interested investors can apply for a minimum of 25 units and a maximum of 20,000 units.

Care Ratings Nepal has provided “[CARE-IR] BB+” rating to the debenture issue indicating moderate credit risk.

NIBL Ace Capital Limited is the issue manager for the debenture.

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