June 28, 2022 | Investopaper
Prime Commercial Bank Ltd. (PCBL) is currently issuing a debenture named “5 yrs, 10.15% Prime Debenture 2084”. The debenture offering is open from Jestha 31, 2079 BS. The issue will close on Ashad 14, 2079 BS. Previously, the issue was set to close on Ashad 3, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended.
The Bank is floating 50 lakh units debenture at a face value of Rs 1000. Hence, the total debenture issue amounts to Rs 5 Arba.
Out of the total issue, the bank will sell 30 lakh units debenture worth Rs. 300 crores through private placement. Likewise, the general public can apply for the remaining 20 lakh units that amount to Rs. 200 crores. Out of the public issue size of 20 lakh units, mutual funds have not applied for the purchase of the debenture.
One can apply for the purchase of the minimum of 25 units and a maximum of 10,00,000 units.
The bank received the approval to issue the debenture from the Securities Board Of Nepal (SEBON) on Jestha 18, 2079 BS. It had submitted the application to the board regarding debenture issuance on Baisakh 22, 2079 BS. Only after the permission from the regulatory body, the bank can sell the debenture to the general public.
The debenture will provide 10.15 percent interest per annum to the investors. The maturity period of the debenture is 5 years. Hence, the bank will refund the principal amount in 2084 BS.
The bank has appointed Sanima Capital Limited as the issue and sales manager for the debenture.