October 6, 2020 | Investopaper
Siddhartha Bank Limited (SBL) is going to close the debenture named “8.5% SBL Debenture 2084” worth Rs. 3 Arba. The bank opened the issue of the debenture from Ashwin 16, 2077. Due to the over-subscription, it will close on Ashwin 20, 2077.
Securities Board Of Nepal (SEBON) has provided the approval for the debenture on Ashwin 1, 2077.
The bank is floating 30 lakh units debenture. The par value of each unit of debenture is Rs 1,000. 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. 1.2 Arba. Out of the public issue size of 12 lakh units, mutual funds will receive 5 percent or 60,000 units.
About SBL Debenture 2084
The debenture will provide a 8.5 percent interest per annum payable semi-annually. The maturity period is of 7 years. Hence, the bank will refund the principal amount in 2084.
ICRA Nepal has provided ‘ICRANP IR A-‘ ratings to the debenture issue. Institutions that receive this rating are considered sufficiently secure to meet their financial obligations on time and have low credit risk.
NMB Capital Limited is the issue manager for the SBL Debenture 2084.
Interested investors can apply for a minimum of 25 units and maximum of all units.
With the fall in the interest rates at current financial market, the debenture issue is likely to attract attention. As interest on this debenture is quite higher than the interest rate on the fixed deposit, investors might consider purchasing the issue as the long term investment alternative.
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