July 8, 2022 | Investopaper
Siddhartha Bank Limited (SBL) is currently issuing a debenture named “10 yrs, 10.75% SBL Debenture 2089”. The debenture offering is open from Ashad 10, 2079 BS. The issue will close on Ashad 24, 2079 BS.
Previously, the debenture was set to close on Ashad 14, 2079 BS. However, due to under-subscription until that period, the deadline for application was extended until Ashad 24, 2079 BS..
Siddhartha Bank is floating 40 lakh units debenture at a face value of Rs 1,000. Hence, the total debenture issue amounts to Rs 4 Arba.
Out of the total issue, the bank will sell 24 lakh units debenture worth Rs. 240 crores through private placement. Likewise, the general public can apply for the remaining 16 lakh units that amount to Rs. 160 crores. Out of the public issue size of 16 lakh units, mutual funds will receive 5 percent or 80,000 units.
One can apply for the purchase of the minimum of 25 units and a maximum of 1,00,000 units.
The debenture will provide 10.75 percent interest per annum to the investors. The maturity period of the debenture is 10 years. Hence, the bank will refund the principal amount in 2089 BS.
Securities Board Of Nepal (SEBON) granted the permission to the bank for the debenture issuance on Jestha 27, 2079 BS. The bank has submitted the application to the board on Baisakh 25, 2079 BS. Only after the permission from the regulatory body, the bank can sell the debenture to the general public.
Kumari Capital Limited is the issue and sales manager for the debenture.