Kamana Sewa Bikas Bank to Issue Perpetual Non-Cumulative Preference Share
July 2, 2024 | Investopaper
Kamana Sewa Bikas Bank Ltd. (KSBBL) is planning to issue a perpetual non-cumulative preference share.
The board meeting of the bank held on Ashad 17, 2081 BS has decided to sell preference shares.
If approved by the AGM and Nepal Rastra Bank, Kamana Sewa Bikas Bank will float 35 lakh units preference at a face value of Rs 100. Hence, the total issue amounts to Rs 35 crores.
The bank will sell full units of the preference share through private placement to the institutional investors only.
The preference share will provide 9 percent dividend, if the bank is in profit.
The non-cumulative feature indicates that when the bank is in loss, it doesn’t have to pay the dividend and the dividend is not accumulated until the next year. The perpetual feature of the preference share mean that the bank will not refund the principal amount, and pay the interest throughout the existence of the bank.
