December 30, 2019 | Investopaper
Kumari Bank is going to issue the debenture worth Rs. 3 Arba from today i.e. Poush 14, 2076. The debenture issue will remain open until Poush 17, 2076. If the issue remains undersubscribed until that period, it will extend to Magh 14, 2076. The debenture is named ‘Kumari Bank Debenture 2086’.
After the approval from Sebon, the bank will float 30 lakh units of the debenture. Out of the total issue, the bank will sell 18 lakh units worth Rs. 1.8 Arba through private placement. Likewise, the remaining amount is public issue size. Hence, the general public can apply for 12 lakh units which amount to Rs. 1.20 Arba.
Interest Rate and Maturity Period
The debenture will provide a 10.25 percent interest rate to the holders. Similarly, the maturity period is of 10 years. Hence, the debenture will mature in 2086.
Nepal SBI Merchant Banking Limited is appointed as the issue manager for the Kumari Bank debenture 2086.
Approval from Sebon
The debenture issue has received approval from the Securities Board of Nepal (SEBON) on Mangsir 29, 2076.
ICRA Nepal Limited has provided “[ICRANP] LBBB+” ratings to the debenture issue. This indicates a moderate credit risk associated with the bank issue.