June 9, 2021 | Investopaper
Nabil Bank Limited is in the process of issuing debenture named ‘7 years, 8% Nabil Debenture 2085‘. Securities Board Of Nepal has already provided the approval to the bank on Jestha 11, 2078 BS for the issuance of debenture.
Now, after SEBON’s approval, the bank will float 30,00,000 units 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.
The debenture will provide 8 percent interest payable semiannually. The maturity period is of 7 years, hence, the issue will mature on 2085 BS.
Himalayan Capital Limited is the issue and the sales manager for the debenture.
With the fall in the interest rates at 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 the long term investment alternative.
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