NMB Bank to Issue Perpetual Non-cumulative Preference Share | To Provide 8.25 Percent Dividend
September 1, 2024 | Investopaper
NMB Bank Ltd. (NMB) is planning to issue a perpetual non-cumulative preference share. The board meeting of the bank held on Bhadra 14, 2081 BS has decided to sell preference shares.
If approved by Nepal Rastra Bank, NMB Bank will float 3 crore units preference at a face value of Rs 100. Hence, the total issue amounts to Rs 3 Arba.
The bank will sell full units of the preference share through private placement to the institutional investors only.
The preference share will provide 8.25 percent dividend, if the bank is in profit.
The non-cumulative feature indicates that when the bank is in loss, it doesn’t have to pay the dividend and the dividend is not accumulated until the next year. The perpetual feature of the preference share mean that the bank will not refund the principal amount, and pay the interest throughout the existence of the bank.
