July 4, 2021 | Investopaper
NIC Asia Bank is currently issuing a debenture named ‘8.5% NIC Asia Debenture 2088‘. The debenture offering is open from Ashad 6, 2078 BS. If fully subscribed, the issue was set to close on Ashad 9, 2078 BS. However, under-subscription until that period, the deadline for application has now extended to Ashad 20, 2078 BS.
The bank is floating 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.
One can apply for a minimum of 25 units and a maximum of 15,00,000 units.
The debenture will provide 8.5 percent interest payable semiannually. It has a maturity period of 10 years. Hence, the debenture will mature on 2088 BS.
Securities Board Of Nepal had provided the approval to the bank on Jestha 20, 2078 BS for the issuance of the debenture.
Sunrise Capital 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.
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