Prime Commercial Bank To Float Debenture From Falgun 19

February 23, 2021 | Investopaper

Prime Commercial Bank Limited (PCBL) is going to issue a debenture named “8 years, 8.75% Prime Debenture 2085“.The debenture issue will open from Falgun 19, 2077 BS. The bank will float the debenture until Falgun 23, 2077 BS. If the issue remains undersubscribed until that period, it will extend to Chaitra 4, 2077 BS.


Related:

How To Apply IPO/FPO/Right/Debenture Through Mero Share?


Securities Board Of Nepal (SEBON) had provided the approval to the bank on Poush 26, 2077 BS for the issuance of the debenture. The bank had submitted the application to  SEBON on Karthik 14, 2077 BS.

Prime Commercial Bank will float 35 lakh units debenture. The par value of each unit of debenture is Rs 1,000. Hence, the total debenture issue is worth Rs 3.50 Arba. Out of the total issue, the bank will sell 21 lakh units debenture worth Rs. 2.10 Arba through private placement. Likewise, the general public can apply for the remaining 14 lakh units that amount to Rs. 1.4 Arba. Out of the public issue size of 1.4 lakh units, mutual funds will receive 5 percent or 70,000 units.

Interested Investors can apply for a minimum of 25 units and a maximum of 5 lakh units of the debenture.

The debenture will provide an 8.5 percent interest per annum payable semi-annually. The maturity period is of 8 years. Hence, the bank will refund the principal amount in 2085 BS.

RBB Merchant Banking Limited is the issue manager for Prime Debenture 2085.

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 the long-term investment alternative.


Suggested Readings:

List Of Upcoming Debentures In Nepal

Investopaper

Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!