July 20, 2021 | Investopaper
Laxmi Bank Limited (LBL) is currently issuing a debenture named ’10 years, 8.5% Laxmi Bank Debenture 2088′ from Ashad 28, 2078 BS. Due to over-subscription, the debenture issue will close on Shrawan 5, 2078 BS. Interested investors can apply until the close of banking hours.
Previously, the debenture offering was set to close on Ashad 31, 2078 BS. However, the issue had remained under-subscribed until that period.
The bank is floating 20 lakh units debenture. The par value of each unit of debenture is Rs 1,000. Hence, the total debenture issue is worth Rs 2 Arba. Out of the total issue, the bank will sell 12 lakh units debenture worth Rs. 1.20 Arba through private placement. Likewise, the general public can apply for the remaining 8 lakh units that amount to Rs. 80 crores. Out of the public issue size of 8 lakh units, mutual funds will receive 5 percent or 40,000 units.
The bank will provide 8.5 percent interest on debenture payable semi-annually. The maturity period of the debenture is of 10 years. Hence, Laxmi Bank will refund the principal amount on 2088 BS.
Interested investors can apply for a minimum of 25 units and a maximum of 100,000 units.
Civil Capital Markets Limited is the issue and the sales manager for the debenture.
Securities Board Of Nepal (SEBON) has provided the approval on Ashad 15, 2078 BS for the debenture issuance.
With the prevailing low-interest rates at the current financial market, the debenture issue is likely to attract attention. As interest on this debenture is higher than the interest rate on the fixed deposit, investors might consider purchasing the issue as a long-term investment alternative.
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