April 17, 2023 | Investopaper
Mahalaxmi Bikas Bank Ltd. (MLBL) is currently issuing a debenture named “10 Yrs, 11% Mahalaxmi Debenture 2089”. The debenture offering is open from Chaitra 29, 2079 BS.
Due to over-subscription, the issue will close on Baisakh 4, 2080 BS.
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 will sell 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.
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.
Interested investors can apply for a minimum of 25 units and a maximum of 400,000 units.
NIC Asia Capital Limited is the issue and sales manager for the debenture. An agreement was reached between the bank and NIC Asia Capital in this regard.
Securities Board Of Nepal (SEBON) granted the approval to the bank on Chaitra 5, 2079 BS for the issuance of debenture. The bank had submitted the application to the board on Ashwin 27, 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.