Machhapuchchhre Bank To Close ‘8.5% Machhapuchchhre Debenture 2087’ From Shrawan 14

July 29, 2021 | Investopaper

Machhapuchchhre Bank Limited (MBL) is currently selling a debenture named ‘8.5% Machhapuchchhre Debenture 2087’. The debenture issue is open from Ashad 31, 2078 BS. Due to over-subscription, the debenture issue will close on Shrawan 14, 2078 BS. Previously, the issue was set to close on Shrawan 4, 2078 BS. However, it was not fully subscribed until that period. So, the debenture offering was extended until Shrawan 17, 2078 BS.

The bank is floating 30 lakh units of the debenture. The par value of each unit of debenture is Rs 1,000. Hence, the total debenture issue is worth Rs 3 Arba. Out of the total issue, the bank will sell 18 lakh units debenture worth Rs. 1.80 Arba through private placement. Likewise, the general public can apply for the remaining 12 lakh units that amount to Rs. 1.20 Arba. Out of the public issue size of 12 lakh units, mutual funds will receive 5 percent or 60,000 units.

One can apply for a minimum of 25 units and a maximum of 5 lakh units.

Securities Board Of Nepal (SEBON) had provided the approval on Ashad 16, 2078 BS for the debenture issuance. The bank had submitted the application to SEBON  on Baisakh 15, 2078 BS.

The bank will provide 8.5 percent interest on debenture payable semi-annually. The maturity period of the debenture is of 10 years. Hence, Machhapuchchhre Bank will refund the principal amount on 2087 BS.

Nabil Investment Banking Limited is the issue and the sales manager for the debenture.

With the fall in the 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.

You May Also Like:

How To Apply IPO/FPO/Right/Debenture Through Mero Share?

List Of Upcoming Debentures In Nepal


Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

Leave a Reply

Your email address will not be published.

error: Content is protected !!