November 28, 2023 | Investopaper
Nabil Bank Limited (NABIL) is going to issue a debenture named ‘7 Yrs, 9% Nabil Debenture 2087’. For this purpose, Securities Board Of Nepal (SEBON) has given the permission to the bank on Mangsir 10, 2080 BS. The bank had submitted the application to the board on Ashad 17, 2080 BS seeking approval to issue the debenture. Only after the approval from the regulatory body SEBON, the company can sell the securities to the public.
The bank is planning to sell 30 lakh 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 of debenture worth Rs. 1.8 Arba through private placement. Likewise, the bank will issue 12 lakh units debentures to the general public. Thus, the total public issue amounts to Rs. 1.2 Arba.
The debenture will provide 9 percent interest per annum to the investors. The maturity period of the debenture is 7 years. Hence, the bank will refund the principal amount in 2087 BS.
The company has appointed Kumari Capital Limited as the issue and sales manager. An agreement has been reached between the bank and Kumari Capital on this regard.