Lumbini Bikas Bank Closing Issue Of “11% LBBL Debenture 2089” From Today
June 8, 2023 | Investopaper
Lumbini Bikas Bank Ltd. (LBL) is currently issuing a debenture named “10 Yrs, 11% LBBL Debenture 2089” from Jestha 16, 2080 BS.
Due to full-subscription, the public issue will close on Jestha 25, 2080 BS. Previously, the debenture offering was set to close on Jestha 19, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended.
The Bank is floating 10 lakh units debenture at a face value of Rs 1,000. Hence, the total debenture issue amounts to Rs 1 Arba.
Out of the total issue, the bank is selling 6 lakh units debenture 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. Out of the general public’s quota, mutual fund schemes are allotted 20,000 units.
One can apply for a minimum of 25 units and a maximum of 1,00,000 units.
Securities Board Of Nepal (SEBON) has given approval to the company on Baisakh 10, 2080 BS. The bank had submitted the application to the board on Ashad 30, 2079 BS seeking permission for debenture issuance. Only after the permission from the regulatory body, the bank can sell the debenture to the general public.
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.
Nabil Investment Banking Limited is the issue and sales manager for the debenture. An agreement has already been reached between the bank and Nabil Investment Banking in this regard.
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