September 16, 2022 | Investopaper
Kumari Bank Ltd. (KBL) is currently issuing a debenture named “10 Yrs, 11% KBL Debenture 2089”. The debenture offering is open from Bhadra 17, 2079 BS. The issue of debenture will close on Bhadra 31, 2079 BS. Previously, it was set to close on Bhadra 21, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
Kumari Bank is floating 30 lakh units debenture at a face value of Rs 1,000. Hence, the total debenture issue amounts to Rs 3 Arba.
Out of the total issue, the bank is selling 18 lakh units debenture worth Rs. 180 crores through private placement. Likewise, the general public can apply for the remaining 12 lakh units that amount to Rs. 120 crores. Out of general public’s quota of 12 lakh units, 5 percent or 60,000 units are reserved for the mutual fund schemes.
One can apply for a minimum of 25 units and a maximum of 12,00,000 units.
The debenture will provide 11 percent interest per annum to the investors. The maturity period of the debenture is 10 years. Therefore, the bank will refund the principal amount in 2089 BS.
Securities Board Of Nepal (SEBON) provided approval to the bank on Bhadra 1, 2079 BS for the debenture issuance. The bank had submitted the application to board on Ashad 31, 2079 BS seeking permission. Only after the approval from the regulatory body, the bank can sell the debenture to the general public.
Siddhartha Capital Limited is the issue and sales manager for the debenture. An agreement has already been reached between the bank and Siddhartha Capital in this regard.